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famousringo said:

2. No more old iPad SKU? Standard Apple M.O. keeps last year's model around for a discount, but not this time. Feels like a lost opportunity to me, as I'm sure a lot of cheapskates would be willing to pay $400 US for a less capable tablet. This opens up room for competitors to sell cheap devices. Perhaps this was necessary to ensure that all component supply could keep a steady flow of iPad 2s rolling out.

The old iPad has been cut to $400 though.

http://www.engadget.com/2011/03/02/apple-puts-original-ipads-on-sale-now-start-at-399/