Yes, consumers have been able to take advantage of mass economies of scale (and low profit margins). Things cost a lot more in the professional market, where production runs are small, and requirements are more stringent.
Compared to one of their many Windows CE handhelds, this thing is going to eat batteries. Must be intended for the "have car and inverter" market.
Asus is supposed to be coming out with a touchscreen EEE in a few months, after Windows 7 releases. If it comes in at a reasonable cost, then it could really bring touchscreen computing to the masses.