I really don't know the answer, but big INFI always seems to carry a disproportionately high price. To me, the prime example is the release price difference between a FFFBM (the basic black, black Micarta model was only $367) and the MOAB (which was $2197). I get that the MOAB is significantly larger, but I don't know that it's more than twice the knife, and it was finished like an LE as opposed to my CG 3FBM, but the MOAB cost 6 times as much.
Honestly, the KZ is probably close to the size of a MOAB, which would make it a bargain at $700. Jeff was kind enough to proxy my KZ2 (CG) at last year's Blade, so it was show-priced at only $497.