Gigabyte MID specs, price set
That this is more expensive than some UMPCs should not really come as a shock to you. It's a case of plus ça change when it comes to trying to sell pocket PCs: just slap a new name on the pig every three years and you don't even have to bother with the lipstick.
The best case scenario, perhaps, is that it comes out like a kind of ballsy meld of an iPhone and a UMPC's best characteristics. In a poll at UMPCPortal—a site that attracts those inclined to buy such devices—most respondents said they wouldn't pay more than $500 for it. And why should they? In a few weeks, an iPhone will set us back a mere $200.
Perhaps software will make all the difference.
Gigabyte M528 MID Update: Official pricing and availability info. [UMPCportal, pic from Engadget]

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Actually the article states, "80% of people that voted said they’d only pay up to $600 for the device. 10% of you were happy with $750 though so that’s at least 70 of you that will be thinking about placing an order."
And really this is more of a bargain than an AT&T subsidized iphone which is locked up tight and has a fake keyboard. The article also states, "A full suite of applications includes a browser based on the Firefox 3 engine, Skype, Pidgin IM, OpenOffice 2.4 and many others."