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It is possible to customize the DynamoDB used by Kinesis Data Streams... You can reduce cost in different ways like provisioned throughput - you can define your own RCU and WCU that is reserved by the dynamo table. Also, You can use data retention after a specific period if not needed. Reduce the number of GSIs. Also, do the capacity planning correctly, and do not over-provision or use Dynamo autoscaling...
You can also go with some other solution as per your requirement with S3 and Redshift. But DDB is good as it is NoSql.
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I am not sure if I understand the question correctly - Can you post an architecture diagram ? Kinesis Data Stream(KDS) does not publish data to DynamoDB, but in case you mean DynamDB Data stream it does use KDS for Change Capture Data (CDC) .