$400USD is with 40% off too! and it's really low ppi, not even up to my personal minimum of 350ppi which really makes for decent, clear reading.
I'd say for a large 13-inch ebook reader, a 167ppi grayscale display (for anti-aliasing) is pretty good.
Until very recently all ebook readers were around 167ppi (most of them 6 inches diagonally) and most people were OK with it.
The high prices are due to the eInk panels, they must have a very low yield at large sizes making them very expensive.