[fchu]

Without getting into what's right or fair, the reality is that it supply & demand that defines price setting behavior (in this instance, the company is optimizing for its consumer surplus)

Maybe another way to think about it is when some innovation drove the price of a car down by 10% (because production costs are lower, the car maker makes the same profit). Would you say "Hey I was happy paying the car full price for the value it provided me, so let me pay its old, full price, I'd be happy to do that"?