Mm-hmm, it was well worth the asking price even before it went on sale; as a number of people have also noted, it's almost an insult to the developers at this price.
One of the best and worst parts of the app store is that even if we believe a game is worth NZ$6.49/US$4.99, we still know it'll very likely hit $1 or free in a couple of weeks, so it's worth waiting. I don't see the app store sustaining this in the long-term, really, and it is certainly unlikely to attract any serious big-name, big-budget products as long as this is the norm.