That $5 pre-order is far too easy to do. I bought one without stopping to research other products like the http://www.fitbit.com/. Brilliantly designed pricing.
It's a lot like Glastonbury ticketing. Deposits in autumn, full payment in January. This is extra profitable because in January many people are short on cash post-christmas and either can not or choose not to pay the full amount. You get to keep the non-refundable deposit and then sell the ticket/product again to another person.
As an aside, any idea on how hackable the Wakemate is? Presumably other devices could talk to it over bluetooth, eg a homemade arduino based alarm clock. Will the bluetooth protocol and data format used be published?