I have a feeling this is all a publicity stunt. The hype has pretty much died down. What better way to get people talking about your Service and your iPhone app (beside apple rejecting it) than to grossly overprice it (see "I am rich" app)? At least you get to see if people will actually pay for it and the free press.

Edit: I'm pretty sure they'll lower the price, which in turn will trigger more press. Seems to me a good marketing ploy, but how far can you go before you dilute your brand message?