Muriss, I'm curious, when the hardware industry has countless examples of phones that are priced like some tablets, tablets that are priced like an ultrabook, and ultrabooks that are priced like a desktop, do you ignore form factor advantages/disadvanges of each particular case, or just when it's a Microsoft tablet compared to notably more bulky laptop/desktop?
Sorry, I just get the mental image of some pasty PC guy walking in to buy a cel phone and storming out in outrage when he starts comparing a Galaxy 5's hardware, price per price, to the potential hardware in a PC he could build. What is the reality is that form factor, weight, and general convenience matters a *lot* to some people, and some people are willing to pay a hefty premium to get a great balance of it all in one package.
There are multiple people in here who are stating what is a notable obvious benefit to a certain audience - the whole Surface Pro series has fit the bill for a powerful piece of hardware that is light, thin, fast, and can be used for everything from plugging into a docking station as a full PC, into an overhead projected for a presentation, plunked down on an airplane/coffee shop/library for paperwork, unhooked from its keyboard cover and used to peruse PDFs or ebooks, or even used as a notepad with the pen. Heck, even fight some gaming in there too - I've got an Acer Iconia W700, on par with a Surface Pro 1, and it players Uncharted Waters, Civilization V, and Neverwinter Nights very well.
My my fiancée has a first generation Surface pro and it has *completely* filled her computer needs, and she works for an oil company and does fairly intensive paperwork, presentations, etc. Go figure, that same Pro is the device she plugs into her TV at home to do everything from watch Netflix to play Civilization. She also reads books on the thing. What you are "pointing out" is true for some people - no, a Surface Pro can't replace a desktop/beefy laptop for everyone, but go figure, it can do *precisely* that for a lot of people. Admit it or not, it IS doing what you are claiming that it factually cannot. If it can't do it for you, that's fine - it's not for everyone. That being said, however much you plug your ears and sing a little "SURFACE IS TERRIBLE!" ditty it' a good product that fits the bill *perfectly* for certain audiences.
Personally, I agree that the i7 model is well beyond the pricing point I'd pay for such a device - after my Toshiba Qosmio in the mid 2000's, I'll never pay that much money for a computer of any sort again - but it's worth it for some people.
Whether these things matter to you or not, it's just wilful ignorance to keep yelling the same old mantra. If you don't like the product, that's fine - just recognize that it really is an *awesome* combination for some of us. It'll take a very special device for me to get anything but a Surface or equivalent Windows tablet next time I'm looking for a device to fill my PC niche.