My suggestion is this, for those who want to, the ability to get a Pandora within 7 days for $500.
After reading this thread there is one question that springs to mind. What about those who don't want to? If you're willing to wait for your unit can you still pre order it at the original price?
Or is $500 now the actual cost of the Pandora?
The current preorders won't change the price, you an upgrade if you want, but if you paid 250 USD, you will still get it for 250 USD within the next weeks / months (depending on when you preordered).
In the long run Craig wants to eliminate preorders completely AFAIK (would also make sense in my opinion), though I don't know if the price will stay or change. That really depends on labour cost, the demand, etc.
The more profit there is, the more we can use to pay the software team, get new users, improve stuff, etc., so it will probably need to be balanced.