Considering they're selling a device with a 10.5" touchscreen and an A12 SoC for $500 today, I think they can go even lower than $800 for a device with only a slightly larger LCD and no digitizer.
While they won't be competing with Chromebooks for general education use cases, I could very well see Apple trying to upsell schools on a $599 alternative that happens to run GarageBand, iMovie, and even XCode.
While they won't be competing with Chromebooks for general education use cases, I could very well see Apple trying to upsell schools on a $599 alternative that happens to run GarageBand, iMovie, and even XCode.