Small quibble back: unless you're specifically looking for 16GB instead of the entry level, the comparison is valid. Apple doesn't let you pay any less than $329.
On a related note, the use of storage as the differentiating price point is also infuriating--it's so cheap (about $1 a GB). Don't get me started on the inflated cost of cellular chipsets, $130 extra for the privilege of paying for mobile data to a specific carrier is a joke.