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There is a distinction that needs to be made between E Ink Vizplex, and Fujitsu FLEPia, the really high costs quoted in the OP are for FLEPia, which isn't being mass produced at all, it is still in "The Lab", and likely requires a great deal of R&D, NRE, and invention to bring the costs down before anyone can buy the thing.
Meanwhile, the current cost of a Vizplex device is ~£200 ($1= £0.50551006,as of this post, so £200 is $400). people are buying the PRS-505, Kindle, Bookeen, Iliad, etc, and that is likely to drive yield improvements, larger production, and other economies of scale for E Ink Vizplex driving that price lower eventually.
(granted, the FLEPia is color and the Kindle is not, but E Ink has color in "The Lab" as well...)
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