Well, I will say that when the iPods first came out, they were in the range of $500 new. At least that's what my wife paid for her 3rd Gen 20GB version. So the price has dropped considerably, even with the added features of the newer models.
Only problem I see coming, being that it IS an Apple product, is that they will make an updated model, and keep the price the same, have a blowout sale on the remaining inventory of the older model, and that will be the last you see of it. Just like when they switched from PPC to Intel in their computers. So a drastic price reduction is very likely in a couple of years when they upgrade the current model.