I actually think $199 (if true) is a winning strategy if the loss per unit (assuming there is) is contained enough, as profits would come in from other sources, assuming sales are as good as one (I, for example) would expect with such a low price. While for some people, as myself, the few existing apps + real office alone (well, and printing, and access to the FS) would make Surface RT a much more interesting option than the iPad even if they had the same price tag, at this price it would be a no brainer choice for many, many customers. This would be a strong push towards the MS Store and related ecosystem, which is the real weakness of MS at this time. MS Mktg to me looks very good in these days. They may even fix brand perception, at some point, which would be unprecedented. Can u imagine? People sticking the MS logo just as they do with the Apple one on the back of their cars. Just the though of it makes me laugh.
P.S.:
"Windows 8 Style" is no more. "Modern" is possibly the new name. or whatever.