A better method to bring down the price is to not buy it. If no one is buying a Kindle at $400, maybe they'll drop it to $200.
The thing I hate most about the Kindle though, is that when you buy a book on it, you're not really buying a book, you're buying a license. If I go to the store and buy a book, it's mine, I can do what I want with it, including sharing it and reselling it. Not so with a Kindle ebook. DRM is awful.
This will help the price will come down. Right now it's out of reach for most people. When enough people have a Kindle, you'll probably see ad-less models reintroduced into the market.
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