Even though a lot of manufacturers may be making 640x480 devices, that doesn't make 480x480 displays more cheap. If there are five companies making 640x480 screens, those will always be cheaper than the one company making the 480x480 screen.
“Microsoft's not promising the world with Windows Mobile 6.5, nor are they delivering it -- it's very much a stopgap, complete with duct tape, bubble gum, and Bondo.”
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Even though a lot of manufacturers may be making 640x480 devices, that doesn't make 480x480 displays more cheap.
If there are five companies making 640x480 screens, those will always be cheaper than the one company making the 480x480 screen.