There is cheap and there is good. ARM SOCs are cheap - again the only reason they're used in tablets is because intel isn't competitive in terms of efficiency. Now that they will be, there is no reason to use ARM SOCs in high end 500$+ devices. Further, I don't consider 200$ tablets to be good. Having used a nexus 7 tablet, it is okay. But you will not find one person who would rather have that over a full blown retina iPad, unless they just hate apple or they can't afford the real thing. Besides which,intel can make an atom SOC on the 14nm node and sell 10$ chips if they want, which will have twice as much battery life as ARM SOCs (if haswell is any indicator).
500$ tablets are a significant market. Sure some people can't afford them - but it has by far the highest profit margins. IMO, intel will get those profits with broadwell. And for those who can't afford the high end chips, i'm sure intel will make ULV low end chips with nearly that much more battery life than both broadwell and ARM SOCs - consider the current battery life of cloverdale. If intel makes a low cost Atom SOC based on the 14nm process, it will be a bloodbath in the low end cheap market that you guys apparently love. You get what you pay for.