I mean, there's a stupid price ($59.99 for a kickstartered retro pixel platform with 2 hours of gameplay), there's the debateable price ($10 to $20 for the same) and then there's the price no one has a problem with ($4.99 or less.)
Seems to me that many developers kept chasing that lower price point, hoping it was going to magically offset itself in higher sales. Turns out, it doesn't really. It worked for Killing Floor and Binding of Isaac (charging way less than their people expect just by looking at it) because the games themselves were novel and interesting. The lower price point drives world of mouth advertising even better.
But when the game isn't noteworthy? Chances are, as I see it, the people that were going to buy it were going to buy it at the debatable price point, period. The people that hem and haw over a $5 to $10 difference weren't really interested enough to get it on its own merits, it's a cost calculation to them. ("I don't honestly care but I could be enticed to buy it at X price.")
So I think devs are learning to price their games to the audience they expect to buy it, instead of trying to tempt the audience that wasn't going to buy it with deeper and deeper discounts. Discounting your game by half of what you initially thought it should get only works if you make back DOUBLE the sales because of it. And my sense is that doesn't happen that often. Put another way, people who were interested in the game in the first place will buy it at the debatable/preferable price point, regardless of what the price ultimately is in that range. People that weren't interested require your game to be dirt cheap before they'll take the risk. Up until now I think developers have continually chased that "break out smash hit" success on Steam, thinking a price point is the secret to it all. It's not. Having a game that excites people does, first and foremost.
Sort of like The Last Door. It's an occult point and click adventure game that goes for like $10 on Steam...and that's only about 2/3rd of the game. (It's broken up into seasons and episodes within a season.) People have come after it for charging $10 for a point and click adventure game. But the people who dig the theme and the execution? It's totally appropriate. And so those guys have stuck to their price point even though the vocal majority are like "Your game needs to be cheaper."