Well that was obvious, with iPad 2 available at the same price as the original iPad, Apple obviously had to reduce the prices of the iPad 1, which they have done now to sell the left-over units. Apple has started to offer iPad 1 in their clearance section on the Apple Online Store.
If you notice, the 16GB version is now being offered for $399, 32GB for $499 and there are similar discounts for all other models. Obviously they aren’t going to keep offering that till eternity, it’s just to finish the stock, hurry up if you want to grab one. Not to discourage those who feel like buying, but who wants that thing by saving 100 bucks? With iPad 2, everything changes again!