A quick check shows the cheapest sub-ATX machine on dell.com right now at $399, and they have a mini-ATX box for $299. Both are configured with Pentium- or Celeron-branded (the "value" lines -- higher power, some features like AVX and VT-x disabled, etc...) Sandy Bridge CPUs, not the low power Ivy Bridge in this box.

This really isn't a bad price for what you're getting, though it isn't out of range of what you'd pay for the same components (in a bigger box) from newegg.