Only if they disallow people to submit 99 cent apps; otherwise, the practice is illegal at least in the US.
So what do the people who were right win? Actually I'm kind of disappointed - the specs are exactly what I thought but the device is fatter and with a large ugly black border. Also the app doubling sounds crap. No multitasking isn't a big surprise but its a big let down. The price points and lack of contract if you do want 3g is nice.
You can't price fix in the US. If the App Store allows apps to be sold at 99 cents (or for free,) you can't collude to fix the price for apps higher than that. The only "real" way to not sell apps at 99 cents would be for them to not be available at 99 cents in the first place. I'm not a lawyer and maybe you could figure a way around it, but I'd rather not tread in that territory personally. Take for example this excerpt from Wikipedia on the subject:
Because it is a beta, you have to login and accept an agreement before you can see it and download it.
Apple can make any price limits they want. 99 cents is the current price limit. If there was anything illegal about imposing a limit, then a 99 cent limit would be just as illegal as a $9.99 limit.