All the rumors and leaks pointed to this being a midrange phone(and I can't prove it, but I'm certain Googorola was behind a lot of that info getting out) so I expected to pay for a midrange phone. People were saying $250 off contract and I thought that was ridiculous, but $350 would be fair. Everything I've read and seen today points to this being a midrange phone. I'm ok with that and would be willing to buy it, just not at a top tier price.
Secondly, look at every bit of advertising Google's done for this phone. What do you see? "Designed by you" over and over "Designed by you" Everyone in the company who spoke about it up until now said "designed by you" Eric Schmidt plasters a picture of him with a customized X all over the web. "Designed by you" But guess what? I'm on Verizon, so I can't design my own.
I feel like Google's first phone is basically Apple's latest phone because everything they did seems like an Apple move. Put out a midrange phone, market the hell out of it and overcharge for it. but hey, everybody says the X is smooth...which is exactly what everyone says about the iphone. Maybe it should be called the Moto i.