I think the 700 series pricing will hold up just fine, and I do believe it is in Intels best interest to move people from the 5xx series to the 7xx series anyway.
If we look at pricing we see:
3xx (banias 1.2Ghz to 1.5Ghz) ranges from $107 to $134
5xx (Prescott 2.8Ghz to 3.2Ghz)) from $202 to $294
7xx (Dothan 1.7Ghz to 2.0Ghz) from $294 to $637
They have already set up the "dumbed down" dothan with the 3xx series. I think the 5xx with prescott can carry on for a while, and since it fits into the DTR market, it makes sense to have similar "features" as the Desktop processors.
--Alan