Dustin Abbott rightly pointed out that the original pricing of the 35 IS by Canon was clearly off.
I've seen many comments in this review, these postings and others that Canon missed the mark with its premier pricing of this lens (and others), and quite frankly, I find it a little maddening.
I don't blame manufacturers for pricing any new product as high as they think they can get away with. As the old saying goes, "whatever the market will bear." They have their own price sensitivity models, and only they know how many they have to sell, at what price, and how quickly, to recover their R&D investments.
They can always drop the price later, as Canon has done with this product, once they've reaped the purchases of all the early adopters who are willing to pay the premium, whatever their rationale / justification.
This will probably be my next lens purchase. I wish I had picked one up during one of the recent sales; the ~ $50 discount would have paid for the lens hood.
Each new lens announcement (I'm looking forward to the 50/1.x-2.x IS and the 100-400 II) will take us on the high price ride all over again.