I assume that this price is for multiple domains

will the price go down, or do you think they will stick to it? it is quite an amount of money for small businesses.

I doubt the price will go down because, like they said, larger businesses or anybody who does not want their personal data/stats shared with big brother google, is willing to pay the premium. Everyone using Google Analytics (which is essentially Urchin minus some nice customization features?) is willingly allowing google to benefit from their site visitor's data.

Also, Urchin always cost around $3,000. It is likely for multiple domain like Goran said, and shared hosting environments often have a server license and let their customers use it for $5-$20 per month.

Aside from the price, this is a nice step for Google. The data sharing component is one reason G apps are usually free, but sometimes we'd rather pay to justify to clients.