It's a $150 device, not $200 base price, and that argument applies to almost anything apple. The phones, laptops, even the airplay wifi spots are more expensive than an equivalent. They also retain their resale value, so selling the old one isn't hard or a big loss compared to the android equivalent. They also care about security and will get updates for many years to come, also unlike most android devices.

People also update their other devices at a much higher frequency, I don't think the 4K edition coming out is going to be a big deal.