Atmel chips (e.g. the ATmega 328) are also around a few dollars. Remember that Arduino is a platform not a chip. You can quickly prototype on the Arduino, no programmer needed, and then burn you finished project to an Atmel chip using the Arduino as a programmer.I never bothered to develop with the Arduino because I'm looking at a mass produced end product for under $100. A $30-$40 Arduino can't be a part of that. It is too expensive. But a $2 or $3 PIC chip can !
Dan