The Surface Go just doesn't have a market. Who is it for, really? The iPad was so successful because it was for everyone, literally anybody from your grandma to a toddler could pick it up and learn to quickly use it. Windows on the other hand, how many horror stories have you heard about users getting a thousand viruses on their laptops and having it crawl to a halt?
The Surface Go is neither good at being a tablet or a laptop. Windows 10 is awful as a tablet experience, and a 10 inch laptop is miserable to live with. If you want a good tablet experience, get an iPad or an Android tablet. If you want a good laptop experience, get a laptop. If you want an awful tablet and a miserable laptop, get a Surface Go.
Then there's the education sector. Why would any school pay $400 per Surface Go + $100 per keyboard when they can just get a Chromebook for $150 with offline office apps for free? The Surface Go is too expensive to compete when education is always getting budget cuts.
So really, the Surface Go is a niche device. Really, I think it's for people who like gadgets and have money to blow and who can prioritize having a shiny new tech toy over actual functionality.
Seriously, are you another one of these people who thinks, theirs is the only possible use case? I fly a lot, so do a lot of other people, size and weight is important. In fact the carry on limit on my next flight means my laptop bag and other equipment would exceed it, with my Surface Pro 4. With the Go I'm ok. But more importantly weight is everything if you're lugging it around. The Surface Go is without doubt one of the best made, lightest, fully spec'd PC out there. I spent a day working with mine, instead of my normal old XPS 15 i7 from a few years back, it's barely noticeably slower, certainly does everything I need, especially running those old Win32 apps that so many businesses rely on, but the Chromebook advocates can't understand. Oh and another thing, generally when flying the only cloud available is the fluffy variety, not much use for cloud based OS is it?
You're not wrong the Go is expensive, especially compared to the Chromebooks, less so if you specified an Android tablet to the same level or an Apple, but I believe there is a market that will pay for the benefits.
Ok, so the education market is price sensitive, true, but are the parents so price sensitive. I bought my Go, to see how good it was to do my job, I now think I might get one each for my two sons to do their school work, it seems to be far more capable than a Chromebook and allows them to do far more computing than any none Windows alternative. They're due an upgrade from there old computers, so maybe the cheaper Go is the best bet.
Though to be fare I suspect education is not the big market place, it's those who need the power, the design and weight. Just like the Raspberry Pi that was built for education, but became a massive seller in many other markets, I think the Go will appeal to business, which will pay the slight premium for the benefits it comes with.