You can get the best price-per-unit-weight on rice by buying tons of the stuff, but very few consumers are willing to do that. We prefer to buy in pounds for various reasons.
"Lower quality, lower price" is an incredibly time-honored and effective philosophy -- of buying things and of selling them.
And if you want to consider the recent pricing (I tend to agree that the 4s were priced to move, so it's not a great comparison)? The 4 is a clear winner. There is no way I'd voluntarily pay $350 for a new nexus 5 instead of $200 for a new nexus 4.
It's silly you'd even argue this considering there is no other phone you can buy for $350 that is anywhere near as capable as the Nexus 5. It is competing with phones with an MSRP of over $500.
> For one thing there is no 8GB Nexus 5.
"you'll notice that the 8GB 5 is difficult to purchase"
You seem to be agreeing with me.
> anyone following Google's Nexus product lines knew that the $199 and $249 price points were obviously clearance prices to move the last bit of inventory out of the pipeline
"I tend to agree that the 4s were priced to move, so it's not a great comparison"
It's very difficult to persuade someone that their views are faulty by only telling them things they've already stated themselves. Where are you trying to go with this?