You missed the point.
At this hour the price cut looks looser-ish, but that's only due to WP8 coming. A non-geek (normal person) will not see any difference between WP7.8 and WP8.
"Why doesn't that game work on my phone?" "Because it's for phones with Retina DisplayŽ only." "Why doesn't my phone have a retainer display?" "Because your phone wasn't sold with it..."
To be honest there aren't much difference.
All the goodies are there (in WP7.8) thanks to Nokia.
The difference is purely academic at this point in time.
A year from now the situation will be different of course, and the WP7.8 Lumias will start to fall behind.
By that time the 800 is already two years old...
The main point is that every WP phone sold, is one less Android/iOS sold.
I said the same thing half a year ago, the Lumias must be priced much cheaper if they are to be competitive.
There exist a void right now, a void that WP will fill.