You're comparing a product from one of the largest companies on earth with an upstart. and even the cheapest ad-supported Kindle is only 2/3 the price of this in US?
Anyway yes the Kindle has better spec but as you mentionned in your first post the fact that it's locked is the whole point. Amazon is not making money on the device ...
Wait, this doesn't work offline or just in a local network? Why does this has to phone home?