Is Intel pricing itself out of the tablet PC market with new Atom Z670 processor?

As with Microsoft, Intel’s prowess in the conventional PC world of desktops and laptops has not provided much help when it comes to smaller mobile devices. Intel’s been a non-player in smartphones, and it’s late to the game when it comes to tablet PCs. And it doesn’t appear like its first foray into tablet processors is going to help much.
According to Fudzilla, the chip giant’s new Atom Z670 CPU is going to cost $75, which not only gives you just a single core, but also is priced several times as much as competing dual-core solutions from Nvidia and ARM. Worse, it will only support Windows 7 out of the gate, with support for Android and MeeGo coming sometime in the future.
The Z670 can run two threads and runs at 1.5GHz, and is supposed to be the most power-efficient Atom processor yet at 5W, so its performance against competition like Nvidia’s Tegra 2 chipset will be interesting to compare. However, could it possibly provide three times the power and efficiency that would match its purportedly sky-high price tag?
As tablets set to explode even further in popularity, thanks to the new iPad 2 and the impeding rash of Android slates, is Intel an insurmountable distance behind the pack? If so, having a tablet with “Intel inside” may not sound as appealing as it did (and still does) when it comes to a conventional PC.