I think, now that we have both restated our positions, we agree more than we disagree.
What I should have said is what I want is a digital camera with the features of the D1X, especially the ability to accept and use my MF and AF Nikkor lenses, and priced between $500 and $800. I think that may be achieveable in the next few years. I don't much care if it has Nikon on the name plate or not, just so it has the features and accepts my lenses.
I agree that there will always be high end (read over priced) cameras, just as there are video cameras and stereo components.
I still think competition will force prices down, just as it did with computers and most other digital equipment.
I remember when CD players first came out, my first CD player was $450. Now a very good component CD player costs less than $200 and one with the features of my first one is sub-$100.
We are seeing it in digital cameras. Cameras with features that were selling for over $1000 just a few years ago are well under $500 now and going lower each day. DSLR's (other than the super pricey ones of a few years ago) are new, give it a few years.
As for Nikon leaving the DSLR field if profit margines decline, if they do, they will end as they began - a lens manufacturer. I fully expect digital to displace film in the middle to high end of the 35mm imaging market over the next 5 to 10 years, just as CDs have displaced LPs. We just have to get the digital infastructure in place. Film will be religated to the high end "art" applications and the low end point and shoot or disposable camera niche in the 35mm arena; film will probably remain in the medium format and large format area for quite some time.
On the other hand, I could be wrong; every now and again my crystal ball clouds up.
As for Extreme Tech doing a camera review, I find it refreshing. What, if any, errors did they make in their assessments or test methods?