Yeah, but then again, if you are looking for something that offers good value for money, and the iPad 1 is not available, then obviously... Nook Color is your next best bet.
I myself have to admit that the Nook Color does offer a lot of bang for your buck right now, and it's true that even if $350 were to become the norm for iPad prices, it'll still be a hard sale to those looking for the absolute budget tablet that is still remotely useful.
And if someone is already juggling between a Nook Color and an iPad, I suspect that someone is already knowledgeable enough about the possibilities of both, so the "average consumer" rule won't apply.
I'm just concerned about the effect of time as the value of other devices start falling down and then hit rock bottom. Just like with Android phones, when a next generation comes, the last generation will hit $150 eventually in just a couple of months.