He is ripping you off. Get it from someone else.
check the prices here:
http://www.lebgeeks.com/forums/viewtopic.php?id=7116&p=2
I will go for a 550$ one if i could test it first of course.
I have one since it was released but i bought it from Amazon.com
If you want a bigger screen wait for the Desire HD (will be released next week)