On one hand I admire them for pricing it high but on the other I think it's going to make it much more difficult to acquire customers. Salesforce is better than its detractors claim but that doesn't matter as much as the fact that sales people now just expect to use it...it's the easy choice. And it's immensely customizable.

I think like the recent Amazon post noted, Salesforce.com's competition is going to come from someone who undercuts them. There's no reason for SaaS software to be priced at $100/head/month (other than the need to fund a sales force).