Web 2.0 cheerleader Michael Arrington’s inexpensive web tablet CrunchPad may be in mortal danger.

Higher-than-expected costs and repeated delays could mean the end of the project, says Silicon Alley Insider.

Arrington has said earlier the CrunchPad will be ready this year “for sure.” But the device has already missed a number of deadlines. It was last expected at the end of July or early August.

Arrington first wrote about the idea of a touchscreen tablet in June last year. He talked of a touchscreen device that would run Firefox and maybe Skype on top of a Linux kernel. The tablet would have low end hardware– a power button, a headphone jack, built in camera for video, speakers and a microphone. It would come with Wi-Fi, 512 MB of memory, 4 GB solid state hard drive and no keyboard. All this for a promised price tag of $200.

Since then, some industry watchers have suggested that the price of the CrunchPad may have doubled to at least $400 because of the cost of production.

If true, the CrunchPad risks alienating customers during a tough economic environment. But