Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
Why wouldn't someone pay that much?, it works out at $20 or so a day, How many people spend more than that on booze or cigarettes even when they are earning minimum wage.
I know people who pay that just for very good internet access - I think it has a market, just as Ferrari's, Lamborghinis and Porsche's etc.. do.
Sure a spotty teenager at McDonalds would find it hard to fork out that much, but I don't think thats their market.