Because in the previous generation (Nehalem 45nm) there where full blown CPUs, at lower freq, like Xeon 5520 which where sub 999$. for 500$ you could get one.

Well, with this generation there is no under 999 cheaper 6 core, even if in the previous one there where models bellow 999.

It's Intel's decision, but i wish there was a 2.26-2.4 ghz hexa-core at 500-600 USD. I would buy it for sure.