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Recently I made some suggestions about improving PDF support on Kindle 3, and I got a response that 'PDF support is experimental'. It's just not the highest priority for Amazon (or for Kindle owners generally I suspect).
That said, I purchased my K2 (paying nearly as much as you did for your DXG) when there was no Kindle PDF support whatever. When basic PDF support arrived unexpectedly in an update months later, it was like Christmas had arrived. So it is all a matter of perspective.
You might consider a Sony reader (e.g. PRS-650, for about $220). Though it is only a 6" screen it has a very rich set of PDF viewing capabilities, including full annotation, contrast adjustment, two-column viewing mode, and PDF reflow.
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