I don't know why people feel penalized for upgrading when they find out it'll be $199 for an HD DVR.

I wish people would lighten up about this.
If you don't like it don't do it.
The DVRs and receivers do cost money you know. They don't grow on a big tree out back of the DIRECTV head office. If they did there would still be some cost involved to prune the DVR tree and water it.
DIRECTV isn't making you buy the DVR. I think the cost to buy would be $800-$1000. They are trying to get some help with the cost of the unit by charging $199 for the DVR lease startup fee. If it fails and you don't have the DIRECTV service plan they usually charge you $20 for a replacment DVR and a 2 year contract extension. I know some people whine about the 2 year contract extension. If you had to BUY the DVR you'd have to BUY another one if it died.
DIRECTV isn't get rich off the $199 DVR startup fee.