What is HP thinking?

I generally don't care much for brand loyalty, but I love HP. In all my experience wih prebuilt hardware, HP has always had good quality, durable machinery at a decent price.
And I was impressed when they came out with that laptop-cum-notepad a few years ago. No one else was really toting consumer touch-screens, and here they were with this neat gadget that could work as a laptop but was also, pretty much, a tablet.
This was a hardware thing, it still ran on Windows software and was before the rise in popularity of cloud style computing.
I really don't know what happened to that particular model, if it still sells or not, but the point is it was a neat idea, and pretty well advertised, in a standard, billboard and newspaper sort of way. HP was, at the time, innovative in its field.
Now it looks like the company is running after Apple, just like RIM and Google, trying to copy someone else's idea instead of coming up with their own.
I'm referring to the failure of HP's tablet, which is going extinct two months after showing up on the market.
Do you think HP learned its lesson, or do you think the company is losing its touch?

The company is stupid. They could've dropped the prices to $200/$250 and continue to sell it like that for a while. The whole purpose of that is to develop WebOS ecosystem, then when it's big, you bring out the next generation of the tablet and hike up the price a little bit and make a little profit off of it but make gobs of cash on your OS from advertisement revenue. For $250, I would've bought it, the hardware is nice.