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The 505 was almost a perfect storm. It was released before the Kindle 1, and still seen as a valid competitor to the Kindle 2. Many people thought it was better than both its immediate predecessor (the 500) and successor (the 700).
The 300 can't compete with the 505 - so it's got to be much cheaper. The 600 is has more features, but the features the 505 has are very well implemented. It's too strong a contender.
The one thing I do find interesting is that the Gizmodo article states that not only will the 505 and 700 be getting access to the Mac client - but that they're also getting a firmware update.
Could be very interesting.
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