> This turns FPGA's into tools for quickly iterating on a design and little else, because for real use ASICs are just too good of a deal to pass up.

The dynamic reconfigurability lets FPGAs have a niche that can't be easily filled by ASICs. Being able to treat FPGAs like any other software target (albeit with a esoteric language exosystem) was a game changer in a lot of ways. I've heard of systems that reconfigure at runtime as well.