Sure, you could pick up an iPod Touch for $199 but that's twice as much, has worse battery life, looks like it'd be far more fragile, and no way to prevent kids for accessing the more adult Wikipedia areas.
This looks like a great device you could give to your 9+ kids to help with homework.
The thing is that you need a data plan for an iPhone to work. This doesn't require anything. (I assume they have something similar to the Kindle)
edit: nevermind. The store page shows this:
"Annual Update Subscription $29 for two updates per year
Receive content updates for your WikiReader delivered to your door."
It seems to say that the content is loaded once and for all? Surprising… so, it doesn't require a subscription but the content is not live.
I agree the Wikipedia device is priced way too high, but you cannot buy an iPhone for $99, or even $199. The money you give Apple is just a down payment.
