Most of blame should be placed on Cisco and Dlink for setting these outrageous price points. Niveus probably gets a pass because all their products are priced for the upper-end of the market.
Where Microsoft went wrong is to partner with manufacturers of networking equipment. They just don't have the experience to develop mass market entertainment products like those manufacturers of low/mid av/home theater manufacturers. I'd partner with manufacturers of 5.1 integrated home theater systems and television monitors. I was surprised that Toshiba was part of todays announcement. You would think their HD-DVD players w/ethernet port are excellent candidates for a Windows Media Extender firmware upgrade. And for $300+, getting a HD-DVD player with Extender capabilities doesn't seem like highway robbery.
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