Michael Arrington’s CrunchPad gave hopes for a decent looking (and functioning) tablet on the cheap but according to Silicon Alley Insider that hope looks quite bleak. They’ve heard from several sources that CrunchPad is delayed or dead due to increasing expenses.

CrunchPad was first supposed to hit the retail shelves in mid-2009 but with the unexpected high cost quoted by suppliers, the device was delayed, the report claimed.

In a more wildly claim, SAI thinks the delay is due to Chrome OS, which will be power the CrunchPad.