I do wish the media would pick up this story ("Amazon Shafts Their High-End Buyers" would make a nice headline).
I really doubt it has anything to do with hardware, but rather with the fact that Amazon doesn't feel they have any competition at the KDX level, since nobody else makes a large-screen device.
So they have a captive audience which has nowhere to go, no matter how irate they get.
Not a wise long-term strategy, IMO, but there it is.
If someone like Sony came out with a 10"+ screen Pearl device with EPUB capability, I am sure KDX updates will come and prices will come down.
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