I can see wanting to have premium pricing to avoid a race to the bottom. If that was the idea they should of made 1080p screens the mandatory spec. It would of made the excellent multi-tasking of RT even better. The multi-tasking with the extra res and office could of really been differentiator for them over Ipad and Nexus tablets.
Yea, I think Microsoft was in a bad predicament here. Yes, they could price aggressively and make the Surface a successful product, but Microsoft doesn't want(/need) surface to be a successful product. Microsoft wants(/needs) Windows RT/8 to be successful products to build up the app ecosystem.
If they price too low, they run the risk of squeezing OEMs out. Now that is not an illegitimate strategy (Apple did it and they seem to be doing alright), but it is not the strategy Microsoft claims and seems to be following. They said the Surface was supposed to 'prime the pump' of the market. Initially I did not understand what they meant, but I think I have a better idea now. The Surface is supposed to be a product that gets you interested in the WinRT device market.
And for the record, I think they were successful. When I first heard of WARM (Windows on ARM), I kind of dismissed it and figured I would pass. After having played with a Surface, I am now open to the idea of picking up a WinRT tablet, though I don't think the Surface will be the one.