I am not too sure you are right... 7" tablets have unsubsidized prices of around $700... this is a ~10" tablet with faster and better processor (read more expensive), more than 110% more screen acreage than the 7" tablets (read even more expensive).
Some reporters from another news site who went to the BestBuy page before it was pulled clicked on the links and found themselves on the BestBuy pre-order page... pricing there was ALSO $1,199. That is not a placeholder pricing if that is true.
Yep, there's the 1 month requirement of service from Verizon in the text under the picture. Bizarre requirement.