Over here you could buy a..
Decent-ish (Phillips / Samsung / Toshiba) 42" plasma for about 2/3rds of that ($1100), or maybe a 46" 1080p LCD - although if you want Sony or Sharp you'd be a few pennies short.
But I think the point is this is just the beginning, and compared to the initial prices of LCD screens (plasma TVs were never that small for obvious reasons) that seems about right.
Maybe in 2 or 3 years they might even sell a few when the price drops to something comparable with today's technology.
1st generation plasma TVs were afflicted with short life spans, and some fools even touted re-charging them - even though the cost of doing such a thing would clearly be more than buying a new one.
The current generation, while limited to 1080i, have better power consumption (but still not that great) and much longer life spans, and of course they're dirt cheap. They cost less to buy now than the equivalent DLP - and reached that price point incredibly quickly.
LCDs are starting to catch up, the budget range are maybe $100 or so more, but obviously in terms of picture quality, budget 1080p LCDs look shite compared to the worst 1080i plasma.
I'm still waiting for my pin-it-to-a-wall-then-roll-it-up-when-your-done, 1mm, 72", 4320p disposable TV - knocked down to 50p at the 1 quid shop.