It's sorta tapered down, and not a step on the outside, but probably for strength? Im not sure, just guessing.

It's annoying though

 It annoyed me on my Decade cause most EC44 cups are like 14mm deep, and I cant use those. Only because I have a brand new marzocchi 55 Slope CR that I can't run on my badass frame.

 Definitely Annoying, It was still pretty hard to track down a ZS44 that fit other than the octane, but the only one I know of that works is the Hope, but that thing is just so expensive

 Yup, I have the Hope type H. Fits great, unfortunately my lower HT was ovalized and any EXTERNAL headset cup becomes loose on my Decade. All ZS44 headsets work perfectly. Any ZS44 should fit. They have an insertion of like 7 or 8mm. I have used a Nukeproof ZS44, a CaneCreek ZS44 and had no problems with either. Are you planning on running a tapered fork?

 I think I'll be running what's cheaper or anything that is of good value in my range, but right now I am set on the pair of manitou circus comps on CRC for 240ish I think. They come in 1-1/8th straight, and I already bought a 15 buck ebay headset, so right now that's where it sits

 Go with the chepest canecreek. You can interchange the weaker parts if needed with ones from their higher end line. Or just buy the high end one now and save the trouble. I learned not to cheap out. It does cost more later on.

 I bought a VP headset, and they make the lower end OEM stuff for cane creek (for trek 4 series, specialized hardrock). Sealed bearings, so I can swap them out by asking the LBS. Pretty much the only thing that would justify me buying a $40 cane creek would be if I ever had to swap the cups out. I've had a pretty good experience with loose bearing VP stuff, so hopefully the sealed bearings are just as good, On my 4300 that I've had since forever, there's the stock VP A71 which I replaced the bearings with loose wheels MFG ones and they work as well as well (if not better) than some sealed ones that I've had.

 Thats cool. If you have had good experience with those bearing then that's great. Buy what works. Usually I destroy stuff that is cheap. I got a Gusset lower EC44 and the cup failed instantly. The tolerances was not enough to keep the cup tight in the head tube. I was able to press it in with my hand. That thing was like 28$ from UniversalCycles.

 man, that sucks. Did you get a warranty replacement? The VP I bought was only 15 bucks...