Don't act as if you're on a high horse and are not obligated to follow up on calling some post "fail". It's rude.
The 8800GTX improved performance by as much as 60-70% over the X1950XTX. MSRPs at launch were as follows:
8800GTX: $599
7900GTX: $499
X800XT PE: $500
X1800XT PE: $599 (raised from $549)
X1900XTX: $649
X1900 CF Edition: $600
X1900XT: $550
X1950XTX: $449
http://www.anandtech.com/show/1930/3
I don't see anything out of the ordinary here with the exception of the X1950XTX. Interestingly, the 8800GTX didn't even have the highest MSRP after all, that "honor" falls to the GTX280 and the X1900XTX.
The 8800GTX is on the same process as its predecessors if you remember (90nm), making it larger and more expensive to manufacture with all the things that follow (more complicated PCB, more VRAM, better power circuitry, more VRAM, larger cooler etc.). It was the fastest (with the exception of the Ultra) on the market for over 18 months, brought a plethora of new features/image quality, CUDA etc. The fastest cards of a generation always have a special place and carry a price premium.
What the e-tailers and retailers do with the prices is another matter altogether that follows supply and demand. The IHV sets the MSRP and cannot be made responsible when a shop charges more (or less).
The 8800GTX brought true next-gen performance and features which (judging by this level) the 7970 did not in my opinion. The 7970 is cheaper to make for a given level of performance, yet carries a MSRP increase of 50% and yet fails to beat the previous king of the hill by more than 30% on average. Now you can bring on special scenarios where that lead increases, but so could I with the 8800GTX. I think, the 8800GTX was way better value at launch than the 7970 at its launch.
Now that we have established that Nvidia was not price gouging with the 8800GTX, let's get back to the topic at hand, the GK104. Maybe you should try again and direct your arguments there.
GK104 is a performance SKU and as such almost always carried a price tag around $300.
Edit:
GK104 is a performance SKU, and performance SKUs have almost always carried a price tag around $300. GK104 is Nvidias second-tier chip akin to GF114, found on the GTX560(Ti). We're talking about the fastest card with GK104 on it, after the old naming scheme that would be the GTX660(Ti).