According to this Reddit discussion [reddit.com], yes; the Sync Module 2 is compatible. In fact, it’s actually preferable, since it supports USB storage. That means you won’t be forced into a monthly subscription plan; you can simply store motion detection clips on an attached USB drive.

The newest generation Blink Doorbell comes with the Sync Module Core, which doesn’t have a USB port. As a result, it doesn’t support local drive recording, and you’ll be compelled to pay for a subscription to view recorded video.

As for the deal, it seems pretty decent; especially if you trade in your first-gen doorbell for a $10 credit plus 20% off. I’m going to wait until Prime Day (July 8th–11th) before purchasing or trading anything in, though, hoping even better bargains pop up by then…