Here Come the Linux iPad Clones
Is $160 close enough?
The SONY eBook Pocket Reader is exactly what you want, but its $160 at Fry's.
Apple Should Get Out of Hardware?
Apple is a bit different because they have MacOSX to differentiate themselves from other PC OEMs.
Along with designs that are different, no neccasiarly better just different; this allows Apple to charge more and gives Apple an advantage that the other manufacturers currently can't compete against. This may or may not change in the future (Vista closes the gap), but currently I think Apple is going ok. Especially in light of their excellent quarter.