If Castle (could) cut their sales price there'd be insufficient funds to cover future developments and (basically) the last ARM based RISC OS machine would be Iyonix.
Ok more people would have them - but the hardware would be going nowhere.
Also I'd imagine if someone bought an Iyonix today (at £1249) and in a weeks time the price was cut to (say) £699 they'd blow fuses and never buy anything off Castle again (end result - the platform still dies).
The only work around I would suggest is a new VERY cut down machine based on Iyonix technology (with say a lower speed CPU, less RAM (say an upper limit of 128MB)) and only 1 free PCI slot. If that shipped at the £599-699 bracket then it *might* allow a little profit and prevent some definate losses to Windows out there.
But hey I am not Jack Lillington and Castle have played a stormer so far so I think I'll leave this one in their capable hands.