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HD TiVo, way too expensive

I didn’t see this one in the FAQ, so I’ll ask the question here: Can someone explain to me why the just-released Series3 TiVo (aka TiVo HD) costs $800? (!!) I’ve been waiting for this damn thing for months/years now, but I just can’t justify spending that much money when Time Warner’s (admittedly inferior in many ways) HD DVR is $7/mo. Hell, we only get ~12 HD channels in this backwater burg anyway, so downgrading to a regular cable box and hooking up the old TiVo is an option as well.

TiVo’s next priciest box is the 180-hour Series2 for $130.1 What’s in that box that’s worth the extra $670? Is it the dual HD tuners? The THX? (Maybe Lucas charges exorbitant sums of money for THX certification?) The extra hard drive space for the additional 170 hours of programming? The CableCard inputs? The backlit remote? What?

[1] Although the Series2’s service fee is $20/mo versus $13/mo for the Series3, based on a 1-year contract. On a three-year contract, the S2’s service drops to $17/mo while the S# would still be $13/mo. Over three years, that brings the total price of the S3 to
~$1270 compared to ~$740 for the S2, a difference of $530.