I don't think MS needs to lower the price that much for businesses, given that a full licence of Office probably costs about that. Checks website, oh it's $499 for 1 user, 2PCs (obviously bulk discounts will be massive, but still).
There are a ton of people out there who used to think they needed office, and have been using iOS happily without it. Microsoft made a huge mistake not releasing Office for iOS as soon as they could -- these people would all have bought it and remained convinced it was indispensable.
Now, most of them won't care (and probably figured out that Office wasn't actually very good at its core functionality, like word-processing and creating presentations, compared to cheaper, easier-to-use alternatives). In any event, the strangehold MS had over the enterprise where even people who didn't want Windows were forced to use it, is broken.
I think the parent commenter was merely stating that a large portion of Office users realize that what they're doing isn't "serious" - despite it being critical to their uses, it's something that doesn't require the full power of a desktop Office suite (and thus can be done without Microsoft).
Fact is, even Surface won't be as mobile as something that fits in your pocket - and I seriously doubt Microsoft can or even wants to make (perhaps a stripped down) Office into a $10 smartphone app.
Windows Phone leper colony reporting in. I got a bright idea to take a spreadsheet that I use for tracking my workouts and uploading it to skydrive so that I could punch my workout in after I finished. It turns out the mobile version of Excel doesnt support a number of formulas and macros like the desktop version does. I think i read that Excel for Office on RT will have the same limitations. I will probably end up getting the ultrabook version of Surface (sans keyboard) for this reason and for pen input for OneNote.