I don't get it. Widescreen TVs are sometimes thousands of dollars more expensive and a lot of times they're smaller. Why is it so much more to make a rectangle instead of a square?
The price has been coming down compared to when they first came out. It probably is simple supply and demand, plus factor in a newer generation of product.
It's not the shape of the screen. These sets are either HDTV ready or some have the HD tuner built in. It's definitely more expensive to build a tube and electronics that have 1080 lines of resolution vs 480. A good example is PC displays, the higher the resolution, the more it costs.
The prices will continue to drop as the volume manufacturing efficiencies increase.