How do folks feel about the pricing, based on the specs given on that page?

I'm intruiged to know how well the Nitrus will sell. I can't help but feel that $300 is too much for 1.5GB, even though it is has a great form factor and feature set.
The flip side is that if Rio keep updating it with bigger drives as they become available, and the typical discounting occurs, then I could see 5GB at ~$200 in that form factor being compelling for daily runners. I wonder if the Nitrus might outsell the Karma if that happens.