Boogle said:
I remember when the fastest of fastest GPUs, at the very cutting edge, would be no more than £200-250.
So what? Let me ask you a question: Would you prefer one of those former cutting edge GPUs costing £200-250, or a 8800GTS costing the same? I know which I'd rather have. Heck, that was quite a while back in any case (Geforce DDR or earlier iirc?) meaning that in real terms that £200-250 is more like £240-300.
I'm not going to get into a debate about whether price fixing takes place or not, but I do dispute your claim that cards don't drop in price and simply vanish with other cards taking their place. In the long term, sure, but there's loads of examples of cards which have dropped in price.
Or, even if what you say is true, it wouldn't matter because the lower priced products are getting replaced by faster ones too (faster than top end cards of previous generations). To elaborate: Say you wanted a 7900GTX, but it suddenly got replaced by the 8800GTX. No problem, simply buy a 8800GTS which is faster and cheaper than the 7900GTX!
As someone pointed out earlier, these high end gfx cards are luxury goods. Sure, I'd like to have one but I've never spent more than £211 on a graphics card. It's not like someone is holding a gun to your head and saying you must buy one, there's plenty of alternatives.
It's not like people should have some divine right to be able to afford the latest and greatest graphics cards.
Going back to the original topic, one of the most damning indicators that 'price fixing' has been going on for a while is where you get deliberately crippled cards which can be softmodded with an extremely high success rate (9500, 9800SE AIW, x800GTO2 etc).