From the article:

  The Kindle 1 was $400. This one’s $79 with ads.

  Knowing that this new Kindle costs less than the cover for my Kindle 2 is freeing: 
  I can just carry it around uncased and unprotected in a (large) pocket, use it anywhere, and not worry about damaging an expensive electronic item, because it’s not.

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Astonishing how far prices and production have come down since the first Kindle, which still seems relatively new.

Also, he paid $70+ for a Kindle case? I'm planning to buy a Kindle Touch and, being someone who carries his iPad and Macbook Air because, what the hell, they both fit easily in my DSLR camera bag, I'm going to really like carrying $400 less in electronics (I almost never use my ipad if I have a laptop with me, out of the home). But even if the Kindle Touch cost more, I wouldn't pay $70+ for a case...I don't think I've ever spent that much on a laptop or ipad case (I currently carry my Air in a padded Fedex envelope).