Some ideas on the high cost:
Initial demand will come from the gaming development community, who can write these cards off as a business expense and not feel the financial pain. There are always early adopters with cash in hand, but mostly professionals will get this card over the next few months.
Research, development, and production costs are higher for the GF3 than previous development efforts. Since the GF3 chipset is expected to have a healthy life cycle, they will skim the market with the initial release, then lower the price to penetrate the market further. Starting out with a lower price means losing money. How can you piss off a market with a high price for a card that offers little current benefit? nVidia and the various vendors know what they are doing, and the market is fickle. People pissed off by the price now will still buy the card when it makes sense to do so.
Clearly the GF3 offers few advantages for current games over GF2 cards (except faster 32bit color at high resolutions), so nVidia must not be banking on short term gains. nVidia's GF3 investment will pay off 12-18 mos. from now when the GF3-specific games start hitting the market, at which point the price will be more affordable and they'll start flying off the shelves when Doom 3, etc. see the light of day.
Finally, given that the GF3 technologies might result in future games that only work on the GF3 seems to indicate that nVidia has established its own playground with high barriers to entry by its competitors. When you have your own place to play, and everyone wants to be there, you can charge whatever you want. nVidia is just being smart.
Doesn't piss me off it is so expensive. It just helps me to save that cash for things that I REALLY need right now...