You have to thank AMD partially for this too. AMD made the 7970 $550 initially and made the gtx 680 look like a value king at the time and made it easy to price gk104 at 500. The current pricing of the gtx 780 is a response to AMD looking like they are a generation behind.
Personally I think 650 dollars is a fair price as long as the silicon is big enough to justify it. Not 1 grand however.
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