It looks like Amazon is currently sold out on refurbished first generation Kindles. If you follow this link, the only buy options are from third parties and the price is actually around $225.00. Refurbished Kindle 2 is still in stock however and you can get it from Amazon for $219.00 with warranty and all. Consider this an Amazon “certified pre-owned” program :)
I’ll periodically monitor refurbished Kindle stock status and will keep you updated.
Thanks to Jerry who pointed out the current stock change.