3.5" touchscreens have been OEM'd by the millions for GPS units such as Garmin, etc. That module has to be dirt cheap by now. Probably very little variation as used in the HP. The lion's share of costs that need to be recouped will come from the R&D, and the initial tooling for the new form factor - the case, circuit board(s), connectors, etc. Don't forget packaging, manuals, marketing, etc.
It WILL cost less to BUILD these units, in the long run. It has fewer moving parts. What they need to sell it for to be profitable is another story, of course.
The price point ABSOLUTELY needs to be lower than the current digital product line. The perceived complexity, and therefore value, of the unit is lower. Joe Scanner wants a lot for his $500, and expects a complex, versatile, capable unit. Joe accepts more complicated operation along with that - it's been the culture of high-end electronics for generations. But a casual user has been barred from scanning due to the complexities of trunked systems, talkgroups, etc.
Casual User = Someone who can't justify the same investment that an enthusiast is willing to make.
I think that Uniden's long-term plan is to reduce the cost of manufacturing for a product line that they can sell for less to more folks, and parlay some profits into the really advanced features and build quality that Joe Scanner is continuing to demand and is willing to pay for.