I agree with all of the above and add that Apple's only plausible competition is from _below_ (e.g. the Kindle Fire) and so if anything they're probably figuring out a plan for what to do if sales start flagging from such competition (e.g. can Apple maintain margins on a $299 iPad2? $399?).
Whether or not you're right, if Apple is worried about competition from "below," as you put it, it will be the very first time since 1978 that they have done so.
