We design, manufacture and sell high-end UFP thermal imaging systems. That includes 320x240, 640x480 and very soon a 1024x768 option. I would love to design a lower cost unit but from an imaging head unit perspective to target manufacturing/process control.
I envision a 35mmx35mmx45mm unit with an accessory port on the back. Then the user can purchase whatever port module they need as they need it. Maybe Bluetooth, WiFi, and USB for starters.
The unit would then stream to either a smart phone or pad.
With an 80x60 it would be tough to hit $350US. But $650 is possible if the market can take 1000 plus units a year.
In this industry, you pay for pixels and sensitivity. On the Mu Optics site, I see the pixel spec but there is not a reference to sensitivity. In thermal imaging, that is the spec you push. Since there is not a sensitivity specification, it leads me to believe there isn't sufficient statistical data from uniformity correction/calibration processes in place. Which in turn means there isn't a production process. I may be going to far but these are things that catch my attention.