By saying that I credit lower prices to inexperienced people buying high end equipment, I meant them buying any DSLR.
I have to agree that as a general rule people with little interest in learning their equipment should not be buying DSLRs. Some of the high end P&S cameras will probably do a better job for them.
What I love about the new Nikon is that for people of limited means that are interested in serious photography, it provides a much lower barrier to entry. They can get started with a cheap body and slowly upgrade their equipment as their budget grows.
When I first wanted to switch from film to digital, the cheapest DSLR was the Canon D30 at just over $3,000. I didn't want to spend the money and I couldn't give up the flexibility of an SLR, so I was shut out of the market. I had to wait until prices got lower so that I could jump in. Ever since then, I've watched as more and more people interested in photography have made the switch as the entry price has gone down. When the price dropped below $1,000 for a DSLR and kit, almost everyone I know made the switch. Now that the price is getting below $500, I expect that even high schoolers and college students that are photography buffs will be able to switch.
As for yo-yo's with more equipment than skill, I have to confess that I fall into that category. I've got some great kit - 1DM2, 10D, 17-40 f4, 24-70 f2.8, 70-200 f2.8 IS, 50 f1.8, 28-135 f5.6 IS, 580EX & 420EX flashes, Gitzo carbon fiber tripod, and an assortment of other goodies. I do know how to operate it all. My problem is that I just don't have much talent. I routinely see people with more skill and less kit outperform me. The better equipment has improved my photography, but it's no panacea. Still, I'm having fun and constantly improving and that's what matters to me.