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It sounds pretty reasonable for me. The "extended SDK" contains a lot of support - possibly even hardware, like a caseless iliad with jtag adapter or something, plus technical support. That is, the developers at some company can call up the irex developers and ask questions. They will probably also get internal design documents and such.
On the other hand, the free one could be simply a tutorial how to set up OpenEmbedded, how to export a filesystem to the Iliad via NFS, and a bunch of header files and libraries. The description sounds like you'll get an sshd on the Iliad via iDS so you have {full|crippled} access to the device. Which is perfectly sufficient.
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