And what you're missing is that Ultrabooks aren't selling and Intel themselves believe one reason is buyers want *bigger* screens than the 12"-13" that was common last year.
In reality if you want PC performance in a small package, that's expensive to deliver. If you want the full PC experience you simply can't do it in this small a package. Surface Pro is expensive because it's hit by the same physical constraints Intel were in creating Ultrabooks. To incur those costs and head away from the actual form factor business buyers demand is misguided at best.
If MS are really targeting the Ubook market they've misjudged the product badly. In fact they just can't make it any cheaper and can't afford to make it look obviously different to Surface RT or the whole Win8 on phone,tablet,notebook & desktop sales pitch falls apart.
...but they really are targeting iPad in business, they absolutely need the below useful sizing that demands and they already have the Windows monopoly on real Ultrabooks anyway.