The cost of the 3DS has been a non-issue from August 2011 onwards (three-four months after launch).
$169.99 is a reasonable price for a handheld device, if you're not willing to pay even that, odds are you didn't really want one in the first place.
Price hasn't been an issue for the 3DS.
I don't buy the other excuses either (d-pad placement? lol). Nintendo was f*cked the moment this took off: