I knew a "business development" guy who specialized in these deals.

Unless something has changed drastically in this space, Dell isn't going anywhere near $200 plus the cost of a Windows license on every machine they sell.

I'm guessing they have higher return rates and higher support calls from people selecting the Linux option who don't fully understand what they're doing. If the Linux option reduced the price, there would be scores of people clicking it just to save a few bucks without understanding the consequences.

You have to keep in mind that technically competent people ordering laptops are actually a minority.