The Nikon D700 does have a wide range of lenses to choose from:
1. Nikon Lenses:
http://www.nikond700.com/nikon-d700-review/recommended-lenses/
2. Third Party Lenses:
http://www.nikond700.com/nikon-d700-review/lens-recommendations-3rd-party/
3: Another independant...
Had been using 3rd compatable batteries for many of my electrical devices from handphones to pdas & even notebooks and so far touch wood, no significant problems.
This has been since my new Nokia < 1 week old original battery which costs 3 X price that of 3rd party battery just stopped...
I recommend the Canon G10 or the older model G9 (which is still available) but it is beyond the S$400 budget.
The reviews rate the Canon G10 & G9 very highly.
This is a good compact camera for one who has been used to a dSLR, with features including a viewfinder as well as 3" TFT screen...
You got it right 'nobody's buying their goods'.
There is no 'economy of scales'.
Actually, if more people buy = should be cheaper to produce.
Anyway, I don't think that this price increase is not from the increase in price in Japan.
It is a local distributor increase of price...