They are called Dell's, HPs, Lenovo's, Acers...etc

Microsoft can't sell the surface for dirt cheap as they make more money when selling a Windows 8 license than when they sell you a tablet. 

You will see a cheap sub 8 inch Surface model before fall though... 

I don't think Surface needs saving. Its posting upward trends of revenue every quarter. People are starting to realize its better than what Apple is offering, but the price tag is unattractive.

I understand there are cheaper tablets, but imo they should have a more competitive price. 

Won't be succesful, like the last models. Another Zune waiting to happen i guess.

Because the cheapest available model of the SP3 is $800? :p Toshiba have a $420 laptop that also comes with an i3 and 4GB of ram, but has 750GB of memory rather than 64GB. It essentially comes down to "do you want to spend twice as much money for considerably less memory, but more portability and a better screen?"

That's not to say the SP3 doesn't look great, if it's gets positive reviews ill probably get one to replace my old iPad 2, but it's not exactly a cheap product.

So the tablet division has lost $2billion so far? Are they aiming to double that or something?

Not for that price.

Am I weird? I don't understand why anyone would pay more than $400 for a tablet. I don't care how powerful it is.

Surface pro isn't a tablet.

All tablets can connect to a keyboard. Doesn't make them laptops.

considering what Apple laptops cost, this starts to sound like a better deal. Still this is for a niche upper class market.