Overpriced Kindle?

The Kindle is kinda neat, but don't you think it's just way overpriced for what you get? I think if Amazon wants the Kindle to be the de facto eReader standard that it should subsidize the heck out of its manufacturing costs and sell them for less than half of the current price (app. $350). This is not rocket science...For example, Microsoft has successfully used this strategy in making the Xbox and Xbox360 top sellers. I guess the counter argument is that Apple didn't need to subsidize the cost of the iPod in order for it to be enormously successful, which is true. However, I don't see anything so gee-whiz cool about the Kindle and Kindle 2 or their respective UI's that is going to blow people away like the iPod.

I would also like to see the Kindle come out with a color display. I really don't read all that many books, but I do read a lot of newspapers and magazines. And especially when it comes to magazines I think a color display is a necessity for a rich reading experience. Anyway, just my two cents.

Bob