Because this is a discontinued model that has a great advantage over the newer model. It can be jailbroken and modded to watch TV shows and movies from a file sharing community online. Most people who own this thing can ditch their cable company because of all the content you can find...
It's selling for over 200 pretty much everywhere.
The new version can't be jailbroken? is that the only reason why the old version is selling for so much? Hardware wise how do they compare? I imagine once the new version is jaillbroken then then that'll kill off this one?