You are actually seeing the dedicated IP "custom ssl certificate" charge ($600/month). Check the cost with and without that option. I just used your exact numbers and the monthly cost is $0.73 without that.
Note that doesn't mean you cannot serve your resources over HTTPS. It just means you cannot alias something like "cdn.yoursite.com" to the cloudfront cdn, you will need to use the cloudfront https url.
You only need to pay the $600/month if you need to support clients older than IE7. You can use the SNI option instead which is "free" (relative to the rest of the costs associated with a CFD).
I did think it came out oddly high -- I also didn't chceck ssl/dedicated ip... I think. Maybe the calculator helpfully updated itself with more "reasonable" settings... ;-)
[edit: yep, was the ssl cert thing. Now I end up with 0.00 USD/Month, which certainly isn't an unbearable expense...]
Note that doesn't mean you cannot serve your resources over HTTPS. It just means you cannot alias something like "cdn.yoursite.com" to the cloudfront cdn, you will need to use the cloudfront https url.