If you're gonna compete, you'll have to compete with the iPhone4 not 2007's iPhone. That said, I don't know if all these statements are true, but some would be quite dealbreaking for me.
That's part of the problem, it wasn't significantly cheaper, the majority cost is the cost of the plan. When you can buy an iPhone 3GS or a Droid incredible for a mere 10% bump in cost over the standard 2 yr plan it makes absolutely no sense to buy a Kin, which is why nobody did.
If your feature-wise competition is at a price point you can't even touch, then you made a huge mistake. If your price-comparable competition is at a featureset you can't even touch, then you made an even bigger mistake.
