Obviously the XiP, from Dish's view, makes the continued cost and/or challenges with the Extender product no longer economical. Most people want a whole home solution now, not just a wireless (not with out its problems) extension of the TV2 experience with a small screen. And while that certainly would have fit perfectly in some home situations, not enough to justify the economics of such a seemingly sophisticated and expensive device.
However, very sad this could not have been made available 2 years ago. Agreed, Dish seemed to indicate that it was still coming. At least we all know it is dead now and can move on.
Now, Dish can go a long way to make it up to us by opening the Sling Player Apps to Dish Network boxes (via Sling Adapter) like it does to the stand alone Sling boxes (Boxee Box and Revue right now, but more to come?). The current restrictions STINK! It just enhances the value of the stand along Sling boxes and diminishes the Dish Network boxes to Dish subscribers. The XiP better not be $17 per month per 813 and the clients had better not be $14 per month or I will have leave Dish for DirecTV's far more reasonable monthly box fees. It's Dish's FEES that are killing me, otherwise I am happy with Dish, but I won't pay an extra $40 per month just cause I like Dish.