There's been a big debate about it on Indiegamer too.
There's nothing to debate. Reflexive feels it can upset an established market by selling games at whatever price they want. This unregulated, unrestricted form of marketing is going to collapse the casual game market: too many games out there and not enough revenue flowing back to developers. This is a disastrous move.
My only concern now is getting Eschalon off of there as soon as possible. I am going to be selective about what portals get my games. And if any other developer had the balls to do so, they'd pull their games from Reflexive as well as this is the only way WE, as developers, can ever hope to get a fair return on our products.