Actually, why should Google collude on pricing? They have deep pockets and could starve out the competition while keeping prices low, if they really wanted.

I think it is priced high because it's basically their smartest model as well as their fastest, so why shouldn't they?

You can still use earlier generations of Flash at a lower cost if you want "fast and cheap and just OK," which often makes sense. (Just checked)

I would predict they will lower this price when 3.5 High appears, but perhaps not all the way.