There's no question we'll see the cost of LCD's drop and the panel size increase, but bear in mind that a huge part of the cost is the yield of good displays.
LCD's are based on the same manufacturing processes as chip fabrication. Prices do drop as volume increases as the process cost is essentially fixed, but the larger the device being fabricated, the (exponentially) greater the likelihood of a defect which renders the whole panel useless.
In the early days of big LCD's, it was common to see a disclaimer that a certain number of bad pixels was "normal" and "acceptable", however that proved not to be "acceptable" to a lot of consumers who paid big bucks for these displays and most mainstream manufacturers now look for 100% pixel functionality out of the box.
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