I can totally accept that it's not ecomomically feasible to make an 8M card..
That said, there are a lot of people who want to upgrade, but don't want to spend too much..
So, you can do 2 things...
-Forget them (for this product) and cater only to the higher end customer who is totally OK with spending more money.
-Convince them that your higher price is really worth it.
So, what's the cheapest someone could produce an accellerator/RAM card for the 1200 for?
To be honest, I'm thinking there's no convincing for the 2nd group (could be wrong, but???).
So, you're talking about making it fast and putting cool widgets on it.. Then charge what those people are willing to pay. It's a smaller market, so you can charge them more...
(and again, I'm OK with that, because some people with 8M RAM cards might upgrade and sell their cards, increasing the number available. ;-)