I haven't followed prices for CDs since I... you know... stopped buying them. I'd imagine that one of the reasons prices dropped is because they have to compete with iTunes and all of the other digital distribution mediums. For awhile, CDs were like $18, $19. And they wondered why everyone was pirating everything.
I can get CDs in a Brick and Mortar store for about $10, which seems reasonable. But I notice ordering them online tends to be pricier. Additionally, downloads are much cheaper, but of lesser quality, unless they are lossless (FLAC, ALAC, WAV), which most digital distribution websites don't offer. I end up pirating, and then buying what I like. I also collect vinyls.