Dude CNet and others are reporting it should be around 500 if not less.
You seem to forget that this is not a 450 gas heli nor it is a brushless electric. It is just a hyped form of coax with vid tech on it and a basic computer to judge lean and recalc rotor speed.
And Parrot at the CES reported it would be 15 min most of flight time with a one hour charge.
Dude, CNET is pretty much worthless when it comes to pricing, especially for things they have no clue about.

There is no such thing as a 450 Gas Heli....well, OK there was one, but it didn't work out so well.
You're right though, it is a pretty basic aircraft. Walkera makes the UFO series that's about $200 with a radio system. The Videos released by Parrot on this AR.Drone do seem to be a bit chopped to make it look like it performs better than it actually does...especially the part about flying around the park from the inside of a living room :icon_eek: Would I pay $1200 for it...prolly not. Just buy the Walkera thing and slap a cheapo video system on it and go, like you said before.