I agree with your points, especially around price point. However, a large part of hitting a price point is volume and negotiating power. Startups have neither (Kickstarter numbers aren't high enough to see a significant price drop), so--whether or not they're done domestically--the first runs of product are usually subsidized by investment anyways. Investment should also cover the R&D. If, as a startup, you're funding your R&D largely from pre-sales, I'd maintain that you don't have enough money.
Edit: Also, to your point about going big or bust--I think that's fine as long as the reason for bust is market powers beyond your control. But to bust before launch because you didn't have a viable plan/resources to get through manufacturing is just a shame.
Edit 2: I should mention that I see small domestic runs as one way to deal with the manufacturing problem. Another is to simplify the product for your first run. Another is to raise more money. They all have tradeoffs and I don't think there's a one-size-fits-all solution. I didn't mean to imply that.
Edit: Also, to your point about going big or bust--I think that's fine as long as the reason for bust is market powers beyond your control. But to bust before launch because you didn't have a viable plan/resources to get through manufacturing is just a shame.
Edit 2: I should mention that I see small domestic runs as one way to deal with the manufacturing problem. Another is to simplify the product for your first run. Another is to raise more money. They all have tradeoffs and I don't think there's a one-size-fits-all solution. I didn't mean to imply that.