Pricing for the bundled hardware and service is now the same as service only. Compare the two sections on this page. It would seem that they're trying to compete with cable company DVRs, which require no investment in the hardware. However, this is a drastic price increase for those who already own their hardware, and anyone trying to activate an old box is still required to commit to a contract term (something even the cable companies don't require).

I agree with Matt, they've lost it.

--Dan.