Not really seeing that its a single core and only has 512mb of ram, that's like galaxy s type of hardware which is over 1.5 years old.
If it was a dual core with 1gb of ram then that would be a nice price, but its not.
The problem is more recent Android phones have spurred this hardware war. To be honest, none of this really matters.
Probably very few of you remember, but back when people used to care about Nokia N-series phones and Sony Ericsson featurephones, we used to compare camera quality, and FM radio, Wifi availability, and all these features. No one cared if it had a dual core or a single core clocked at 200mhz. As long as the phone didn't lag 2 hours trying to check email, people were satisfied.
All that matters for these phones is that they're fast. The iPhone 4 feels ridiculously fast, and the 4s with its dual core 800mhz seems to smoke my 1.5ghz dual core TouchPad? Different OSes have different needs, and as long as this phone works fine then everyone is happy. The iPad 2 smokes everything already with its 512mb RAM for example. You *don't* need 1gb, but in the case of Android maybe.