Don, using a tablet instead of a smart phone solves the key-size matter. I can run my new SW-8 with my phone, but the iPad is a far better platform. As for the chip issue, I don't know what's in the CAB-2, but control systems chips are in short supply right now (see automotive). If the chip(s) used are no longer produced, reviving the CAB-2 would require significant fresh engineering. All kind of things are moving to the Bluetooth/App world, so Lionel likely sees this as "going with the flow" and getting rid of unique hardware that will eventually, if not now, get orphaned by the market.
As for pricing, our club sold a bunch of sets, whether donated intact or assembled from odds 'n ends, over the holidays. The buyers told us that they were not able to find sets in local stores (small market) or the sets in the stores were incomplete. If we had more transformers, we would have sold even more sets. Retailers and customers at entry-level seem to be pushing back at some price points.
