Imo, they found a sweet spot of $/GB on a much higher latency/lower reliability region (this is analogous to increasing overall capacity in a communication channel by instead of using a few highly reliable high powered symbols use optimally many unreliable low power ones with error correction) -- disk manufacturers already use this aggressively for soft failures within the disk, but are obviously restricted on more systematic failures (i.e. if the whole drive fails there's nothing they can do).
If a single drive has a P_failure, with many drives they can achieve close to 1-P_failure reliable storage capacity [1]. So all they have to do is seek the optimum
$/GB_opt = min over C,D [ C/(D*(1-P_failure(C))) ], where C is the cost per drive and D is the drive capacity
-differential pricing
-ability to switch to transparently switch to slower technologies in future
Now factor that the disks are both large and crappy. A 120 Mb/s read speed and 1Tb disk size would imply 8000 secs ~ 2 hours. Factor possibility of differential pricing as you mentioned (even longer queues), and you may get an upper bound of 3 or 4 hours.
I'm just speculating though.
I wouldn't be surprised if Glacier's latency wasn't purely artificial so much as it was a deliberate design decision so the architecture can be very different from S3: pure streaming I/O, huge block sizes, concurrent access is nowhere near the same, etc. That much time allows really aggressive disk scheduling and it'd make it much easier to do things like spread data across a large number of devices with wide geographic separation.