Originally posted by pxpaulx At this point you've got to know Pentax doesn't run more than 2 bodies. Though there hasn't been an official announcement, the K7 is no longer in production, replaced by the K5.
To the OP, Pentax has always been a 2 dlsr body business. They come out pretty consistently on a 16-18 month schedule, the K-r was an early exception to that rule. Though the K7 has not been officially announced, it is a very safe bet the K5 is the replacement, they will not have a mid-level body between the Kr and K5.
By my count they are a 3 body (or 4 if you count the 645d) business.
k-x Entry level
k-r Adds battery, viewfinder points, and a couple more features
k-5 Adds WR, 100% pentaprism, more pixels, more features
Hopefully for CES they will have new lenses and accessories to show off.
I think the shift in the market price is just the natural process of the product finding its level against the competition.