I am also pretty sure that the reduction will not be that great, more a leveling off. IMO, HDTV's are following the personal computer model with new technology and manufacturing productivity increases driving new enhancements and lower prices. I believe the combination will lead to people having more than 1 HDTV and result in their more frequent replacement.

I think we will see companies pushing the envelope to justify higher prices and margins. Some of the features that I think will get built into top of the lines sets will include the following:

1) DVR technology - With retail storage prices below $100 for a terabit of storage, it would not surprise me to see a struggling company like TIVO agree to do this.

2) Internet connectivity - With support multiple download services.

3) Higher resolutions - possibly starting at 2160p

I see all of these eventually being driven down into mid-market HDTVs just like 1080 has been.