Because the driving force behind the price of technology is size. The smaller components cost more to make, which is why the smaller devices are so much more expensive than their larger counterparts. That is the basic cost factor in tech pricing. The DX does nothing different than a smaller Kindle as far I can tell, but costs way more. I have no idea why. I would guess that Amazon doesn't sell enough to lower the price. But this really makes me want to break one of our DXs open and compare its parts to the parts in the regular size Kindle. Because as everyone knows, the iPad costs more because it is so much more than just a giant iPhone. So why is the DX so expensive? I am guessing that Amazon is just using it as a beta for a tablet they hope will help them compete with Apple.