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Didn't Apple give a discount
Didn't Apple give a discount or something when they slashed iphone prices?
Whereas I agree that technology prices shift, we're dealing here with a service that is also the core backbone of their income. The land economy is central at the moment to Linden Lab.
All they had to do was be a little bit of imaginative with their price cut. A drop of USD$675 gave them room to be creative. They could have offered existing owners a discount on their next purchases or a flat rate of purchase and offered new owners islands at USD$1200, and it would still have been a price cut.
Sure people would have still complained, but they'd have had less to complain about and would have felt a little more valued.