The Wii should have been 400$ at launch. If you recall, this is what you could expect to pay on Ebay the first two years of Wii, when they were impossible to find. I know, because I was lucky enough to find one and flipped it for 400$ online in 2008.
400$ is the right price. Hell, you people do realize that an Xbox 360 is still selling for 400$. Full loaded with Kinect of course, but still there's a 400$ sku on the market today. Nintendo would be stupid to launch under 400$, especially if it ships with a big HDD and a Blu Ray drive.
I'm super pumped for this machine, though I'd be lying if it wasn't just a temporary stop-gap that helps ease my wait for the Xbox 1080. Still, what a sweet wait it will be now, and finally I can enjoy all those Nintendo franchises I've missed out on this gen. Hope they launch in 2011.