You nailed it; this is absolutely hush money to avoid a Class Action Lawsuit.
Honestly, so few of us were still using the Band, I imagine writing the checks for that end of life, was not a big deal, in the grand scheme of things. The Invokes however, seem to be MUCH more prevalent in the wild, which has backed them into a corner, on how to make us all go away quietly.
I know for me, I bought my Invokes at $45 a head, so I am coming out slightly ahead...but then I remember I have to use the gift care on another Microsoft product, which they will inevitably kill off in spectacularly mismanaged fashion. Sometimes I genuinely wonder how Microsoft keeps surviving...than I remember I bought a Zune, Windows Phone, Band, and Invoke...which rather answers my question, doesn't it?
Cheers,