$500 for the old $200 is definitely a fumble.
This is missing an important context. And I actually remember this well, because I was saying that too. And the reason I was saying is that $200 plan didn't come with API usage, it was a chat plan.
It made no sense up until they started including API usage. Just as $500 makes no sense now.
> costs going to 10% of white collar income.
There's a permanent and ever lowering ceiling maintained by open weight models. It makes no sense to justify paying 10% of income permanently for something that will get you unlimited local inference for a 6 month subscription cost.
Now you can use it in coding harnesses that call the API.