Rackspace Raises Cloud Pricing 50%

As far as I'm aware, rackspace doesn't currently have the greatest name in could services (based on articles such as this http://www.techcrunch.com/2009/12/18/rackspace-down/).

While customers are struggling with downtime, is this the best time to raise your prices?

Doesn't it make more sense to improve your product before you can increase the price?

Also, aren't we seeing other cloud services dropping prices as scalability improves?