Well, as was being rumored, the new Kindle is out, and as expected, its hideously expensive @ 480$ + taxes n stuff. Amazon is trying to target this larger kindle at the newspaper/college student (textbooks) market. However, who wants a 500$ device and a 10$ monthly paper subscription on top?
Same hold true for students as well. Textbooks, are expensive, granted. But there are always older books one can source. + these are black and white only, and I dont know how well complex mathematics books etc will appear. And again, the students will be expected to keep them for like 2-3 years to break even, of course assuming the thing is still working fine after all that time.

A proper break up of costs etc: 4 year ROI for kindle DX
The guys hit the nail on the head. Future savings, (n thats a far away future) may not be enough to push this device. Amazon needs to come up with another plan, maybe a subsidy or something, else this will remain a high end toy for the tech market.