DonM,
I see your point but I do not believe this is convincing for two simple reasons:
1) Any time you take a machine and break it down to its components, its price is going to quadruple; from cars to keyboards.
2) If you look at what you get with Tyros compared to say GEM Genesys; feature by feature, you do not get too much. The sequencers on the yamaha are inadequate, no speakers, low quality keys. What makes Tyros good is the quality of sounds and styles.
If Yamaha can take JUST the sounds and styles and put them in a small box for $500, I will buy this anytime over the Tyros board. I do not need the DSP, I do not need the sequencer, and I do not need anything else. Just the sounds and styles. And that is the only good thing that Yamaha has to offer. But this will absolutely not work for yamaha. If they did this, they rob themselves from the real reason customers buy their keyboards: SOUNDS and STYLES.
Now please do not misunderstand me. I am not saying not to buy this keyboard. I think despite the fact it is over-priced, for a musician, one will pay anything to get the sounds and styles he wants. Even for myself, I was at one point shopping for Tyros. Hopefully, with the introduction of PSR3K, prices will be more reasonable. I guess we have to wait to see.