The difference between $40 and $100 is peanuts for people who can afford to buy extra gadgets in first place. People pay more for a day at disney world. I pay more when I buy full tank of gas for my car. Many have larger monthly cellphone bills. Or you could buy a single console game with same price. A dinner for two? A new graphing calculator? A new jacket? new shoes?
Claiming that a $60 price difference is going to be a deal-breaker for gadget buyers speaks of lack of marketing experience ;) The real challenge openmoko has is convincing people that this gadget is useful enough to buy in the first place. Once they have a use for it, it will look cheap at $99 next to a $350 kindle in a electronics store.