>> MSP430s, three for a dollar:

I see that Freescale is also advertising new sub-$1 parts based on the  
RS08 core.
http://www.freescale.com/webapp/sps/site/prod_summary.jsp?code=RS08KB&tid=FSHMINI_20100302
(RS08-based parts replaced the Atmel tiny11 as the cheapest uC when  
the tiny11 was discontinued.)

I think that at the moment, the robust 8bit uCs still beat  
theoretically cheaper 32bit CPUs when you total up systems cost.  That  
the ARM has 32kB of memory is pretty immaterial if your code only  
takes 512 bytes, while the 20mA pin drive might be more useful.   
("It's all about the blinky lights!")

An interesting question from a business perspective is whether PICs  
are more expensive because they cost Microchip more to produce, or  
just because microchip CAN charge more.  It can be hard to track PIC  
prices per functionality; older chips don't disappear the way they do  
from other vendors; they just stop getting cheaper while newer chips  
with better functionality are introduced at a lower price.  (most  
recently the "enhanced midrange" chips, I think.  PIC16F1xxx)  And who  
knows how much PICs really sell for in large volumes (when things  
become "negotiable.")  It can be a good position to be in, to not have  
to advertise very low prices just to attract customers.
(Atmel, Freescale, and NXP both frequently appear on lists of  
companies in questionable financial shape.  No so Microchip.)

BillW

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