"Getting the iPad 2 out at below the £400 mark - if only by a pound - is a psychological barrier overcome. It'll be harder for potential punters to argue the gadget is too expensive, and it'll turn many folk who thought £429 too much from passers-by into purchasers."
Not really, IIRC the original entry level iPad was only £399 as well - it was the VAT increase that pushed it up to £429. Folk still complained it was too expensive.
Yes, in terms of the "exc VAT" price, it's lower, but for most people it's the same price as it previously was. Having said that, it'll probably work for me as I'm looking for a new laptop for in front of the telly...