The iPod touch uses a budget screen and even the 4S one is not up to iPhone 4 standard.
So switching te iPad 2 to a budget screen may well coincide with a price drop.
Obviously it won't be $300, at least not unless the iPad 3 is a big and different 11.6"
We like our 99c apps so too many would choose the $300 iPad versus the $500 iPad.
Not good business so $400 is certainly the price.
However, if the iPad 3 screen is also very cheap too, then $400 and $300 is...