$199 is the price range that a lot of people won't buy a phone once it goes past that point. That doesn't automatically make them bargain hunters or cheapskates and unwilling to buy software though...
It's just a magical price point where a larger market opens up. I wouldn't be surprised if a larger percentage of the $199 purchased PB market was more willing to pay for apps than a larger market of $300-600 android tablets, just because the two markets are polar opposites. The purchase price of the tablet is not the indication of this...