Amazon probably did market research to determine what people would really want. When I read your list of things the Fire doesn't have, I realized I wouldn't miss any of them.
If it's missing an SD card slot, I'd miss that. 8GB isn't that much space when you're talking video.
That said, $200 is getting dangerously near the comfort zone for a device purely bought with the intention of using it around the house (where WiFi negates the need for large onboard storage).
I thought you didn't need to keep all your videos on your device. You could archive and re-download whenever you wanted much like the Kindle app on iOS?
Free cloud helps (although I think that only applies to stuff you've gotten through Amazon), but even if just for the airplane use case, it'd be nice to have the option to carry a bandolier of sd cards.