Here is there positive spin on their discontinued product:
Since we announced the price drop, the number of inquiries about the product and the speed at which it disappeared from inventory has been stunning. I think it’s safe to say we were pleasantly surprised by the response.
Why would you be so pleasantly surprised? Maybe if people bought them in the first place.
As to why HP is bringing out a final batch, a comment from Hacker News pretty much sums up my thoughts:
I suspect this is just HP clearing out the supply chain of already purchased parts and units still at the factory. HP's cost is probably just a few dollars per unit to ship and possibly assemble them.
I find it hard to believe anyone approved an entirely new order of parts at $300 BOM just to sell them for $99.
A quick search on eBay shows you that people are just flipping these $99 units. And from the same article the question is posed "Q: Please limit stock to 1 per person: some people are getting 20 and then selling them on craigslist and eBay for a major profit."
Guys, let's not jump to any conclusions. The TouchPad is dead. They are not going to suddenly resurrect it (even if they could they'd be sued for unfair trade practices). Or as HP puts it:
Q: Will HP continue to make more TouchPads with webOS to meet the demand?
HP is discontinuing the development of webOS devices and is winding down device operations within our fourth fiscal quarter 2011.