Stepping in here, I personally think most of those things are overpriced, from a "what does it do for me" perspective.
I love music, but I don't think carrying my music with me is worth the price of an ipod touch. Sure, it can do other things too, but the vast majority of those things are really peripheral. Calculator? The sticky note app? Little games? A level? They're all things I do just fine without and don't need to spend $350 on a 64gb touch to have with me.
Sure, there are people who actually USE all those apps, but I think for most it's either the "ooh, gadget!" factor, or the "cool" factor.
Yes, the kindle is overpriced. It's a very functional device, but for me in my life, it's not worth the cost.
So much of this is a matter of perspective: he's saying $199 is what it's worth TO HIM. And a bunch of people are getting defensive. His life may not parallel yours, an ipad might be 3 weeks pay to him, or he might not see any significant value in what an ipad would do for him. At least not significant enough.
For the record, I'm personally of the opinion LOTS of technology is overpriced. Sometimes I'll pay for it, sometimes I wont. I bought an Xbox 360 after a price drop (still a lot of money to /play video games and nothing else/) but don't see the need for a cell phone. My wife's got one through work, but I just don't need one enough to pay $50-$200+/month for it.
These things might be priced "correctly" based on supply and demand, but that doesn't mean they have to be "worth" their price to anyone at all, much less everyone.