For a number of reasons Pascal is unlikely to be cheap.
But history is against a lot of the claims in regards to "1070" performance:
GTX670 was convincingly faster than the GTX580, GTX470 stomped all over the GTX285 the GTX260 was often almost twice as fast as the 9800GTX(+) - nVidia has no problems killing off the value of older hardware, often the next generation x70 position card was priced keenly against the previous generation high end card or even significantly cheaper while matching or beating its performance and the 980ti certainly won't be immune to that.
History also shows that every generation the gap between current high end and next gens mid range is shrinking. The 970 and the 780Ti are very close in performance.
Sure there is a die shrink involved but die shrinks don't give the performance increases they used to.
It would not surprise me if the 980Ti was faster than the next gens mid range.