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Actually, I do not believe Core M will move the "needle" mearningfully either. Perhaps they can surprise a bit if the Llama Mountain like premium devices really come in the $799 range, and pretty good ones in the $599 range.

But it doesn't look like that's the case. It's cheaper, but its "Ultrabook" level pricing not "2-in-1"(which cost even more) pricing.

I wouldn't base your analysis on Gen1 models, unless you're trying to gauge Core M penetration this year. My guess is that OEM's will want to capitalize on the "uniqueness" of Gen1 designs, and charge a premium. The premium should be gone with next year's designs.

So in one sense, I agree that Core M isn't going to change the world immediately - but I do expect to see $399-499 systems with Core M eventually. If they can build a decent system at $299 (and there are plenty of examples), the for $100-200 more they can fit in a Core M processor. By the time you hit $599, it should have plenty of memory and storage capacity, as well.