but the price *does* include lifetime (of the company/device) wireless internet access, which to me would be worth perhaps $5/month.
I did forget about that part. That doesn't apply to the other products on the market though. And some of them cost even more.
The case of computers and GPS and everything else coming down in price is somewhat fair, but this is using many of the same technologies that have already been cost reduced. Not to mention the products (though not Kindle) have been around for a few years already. Relatively speaking though, e-ink is still fairly new, but one of its great promises was low cost. I'm not seeing that in any reader device yet.