Today, a tablet is a commodity product. Making a faster and higher resolution tablet is no longer revolutionary but just evolutionary. If the OP wants the existing players to survive why can't they create more breakthrough products than encourage inflated profit margins?
This is exactly how markets are supposed to work - there is good information about pricing, there is good information about product, and there is free entry and exit for both manufacturers and consumers in the market.
Not even mentioned in the article is MediaTek whose really cheap integrated chipsets are allowing another wave of really cheap devices that make the ones in the article seem expensive.