Why do u say 'analog' HDTV recording and not digital? Does HD Tivo not record digitally?
There are only two options to record HDTV for the forseeable future -- record the original digital bitstream from satellite (like HDTV DirecTivo and Dish 921) or re-encode and re-compress analog signal from component into digital form so it can be saved to the hard disk.
The first approach is used by the DirecTV HDTV Tivo and the Dish 921 HDTV Tivo. However, as soon as the signal leaves the box, only the second choice is an option for HDTV recording (for forseeable future). Thus, if you wanted a standalone HDTV Tivo for use with a Dish Network HDTV receiver, it would have to accept the HDTV signal from component, re-encode and re-compress it with quality loss, and save it to disk. The technology to do this is currently very expensive -- upwards of $3000.
And why would it be so expensive to have both DirecTV and Dish? Or is it that DirecTV is sucking up most of the cost of developing the HD Tivo and $999 is a money-loosing cost for them?
DirecTV is the one responsible for the DirecTV HDTV Tivo. They paid for the R&D. It represents a competitive advantage for them. They are not going to give away that competitive advantage and spend money to develop a HDTV Tivo that is compatible with Dish Network.