I bought my K20D in Nov 2008 for $689
That was also a bi-annual photokina year, two months after the big imaging show in Germany.
I considered adding a 2nd one when it got down to $649, but I didn't. I bought a D700 and a couple new nikon lenses instead.
My point is, K-7 will drop below $700 new. You'll see.
I've followed this Pentax camera pricing game since I paid full list price for a Pentax film camera in 2002, only to see it drop by half a year later.
Unless a photographer has no dslr inhand, its best to wait to pay half the money for Pentax best dslrs.
$600 discount for waiting to buy a "$1299" camera is worth it to me. But I already own a dslr, so no photo opportunities are missed.
I still own some of my Pentax lenses, I still could buy a K-7, but no way will I pay more than $699.