1. People buy videocards to play videogames or perform other tasks such as GPU video encoding, GPGPU computing. For those purposes, 20-30 watts savings that may be achieved with 7750/7770 do not justify their weak gaming performance relative to HD6850/6870/GTX560. Furthermore, for people who don't play games, APUs inside A8 or even Ivy Bridge are more than sufficient for GPU encoding to iPad/smartphone and for basic gaming such as Starcraft 2 and Portal 2.

2. HD7750/7770 series isn't fast enough for modern games and at the same time they aren't priced low enough either. Specifically, $120 HD6850 > HD7770. That tells us just how lackluster the HD7750/7770 series is:
http://www.computerbase.d...schnitt_leistung_mit_aaaf

HD6850 came out in October 2010, or almost 1.5 years ago (!). There is absolutely no way to justify HD7770 when for similar $, HD6850 is better and for $10-15 more HD6870 mops the floor with it.

Prices should have been $79 for HD7750 and $109 for HD7770. Another way to look at it is that HD7770 is only 35% faster than HD5770 despite launching more than 2.5 years later. That can only be described as pathetic - performance has stagnated at the low end of desktop discrete GPUs.

Wait till stocks of 68xx are cleared. Until that point of course 77xx will be more expensive than should be - AMD doesn't want to interfere with stock clearing. Smart move, I'd say - and it's not exactly the first time it happened - remember 4870 vs 5770?

This has always happened with new graphics cards. However, you are acting as if 7770 and 7750 have little to no potential to game, which is completely wrong, especially in this era of console ports. I can't think of a single game that the 7770 cannot run well.