You'll still have to pay for the monthly service, currently 9.99/mo. and 6.99 for the 2nd-5th units.
That MyFi kit is pretty neat, including the portable unit, car kit, home kit, etc. Totally all-inclusive. 350 is the MSRP. The SkyFi would run you about 260 for the unit, car kit, and home kit, and doesn't include portability, built in antenna, the built in rechargeable batteries, or the hard-drive thing.
I don't see the price dropping for at least 6-8 months after release, if that. XM has got the market share, that's a very cool product, and it will be in demand.
We've had two XM radios for about eight months, and love the heck out of them. If you really love *your* music library, then you can stick with the Ipod or something else [I used an MP3 CD player]. But even with as much stuff as I've got on CDR, I wanted something different, and every day on XM, I hear something I've never heard before. Right now, for instance, the Casualties are on Fungus, Dry Kill Logic on XLML, Hagans on Beyond Jazz, and a standup routine from Bill Scott on XM Comedy.
I get more use out of my XM radio than I do digital cable.
Satellite radio is going to be big, it just has to get past that 'Pay for radio?!?' thinking. You do pay for it, but the difference between satellite radio and terrestrial radio, in most markets, is as great as the difference between pay TV and 'free' tv.