I think that a 400 dollar price tag is not reasonable. The ak100 is better than the 400 dollar hifiman 602 in sound, better ui, more stable os, plus touchscreen. It sounds better than a modded ipod, which costs around 550-650, with no external card slots and no touchscreen. People think that the iBasso sounds better, but it costs 800+ and it is a much bigger build. Hifiman 801, about 800 dollars. Colorfly around 750. Tera player costs 1000+ us dollars. Some people also like the studio v player's sound better at around 400, but it does not have a touchscreen.
A lot of the extra cost is because of the touchscreen; most DAPs don't have it.
Don't get me wrong. I think 700 dollars is a lot of money, but it seems like the price fits the price of what is already in the market. Obviously, I would prefer if it cost less, but I would prefer it even more if it was free. Not going to happen obviously. You are not going to get a DAP with a touchscreen for 400.
It would be cool if you could just purchase the units directly from iRiver at dealer cost. Just under $500.00 then IMO it would really be worth its price. But price is a subjective thing in the end and in that we all determine what is worth what to us. :)