Reasonable decision.
The Q6600 is at a perfect price point to move quad-core into the broader market.
Lower QC prices would also be a threat to dual-cores which are Intels strongest product IMHO (yes, even more than QC).

We can blame AMD for this pricing. Come on AMD, kick the Phenom up....

Intel won't have any incentive to lower quad core prices until there is a competitor on the market.

It is a prefectly reasonable decision from the business standpoint. If you want quad now, (excluding socket F opterons), you have to buy Intel.

(A note to critics of AMD, even if you hate the company, they make your favorite chips cheaper. Hooray competition!)

I am looking forward to the quad core pricing wars.

See there INTEL FANBOIS

A littel taste of an AMD-less world ( Like in 1995 ).

So before you start Dishing "AMD MUST DIE" slogans use the little Rational you have and think first. ( At least if your still Mature or Capable enough to do it ).

And I am Blaming AMD too for doing a Half assed job in Competing against Intel.

In AMD's defense, they are very small compared to Intel.
(AMD has market value of only ~5% of Intels). They have had to develop state of the art technologies and stay competitive with a giant.

I wonder if Intel is going to produce LGA775 Xeons on the 45nm die?

Now you can see the true color of Intel , without any competition intel will not care about consumers and I hate all fanboism who think no need competition even if AMD is second best or Intel second best.
We need both so that the benefit is in our hand and I pray for god that AMD success in their latest products

"Now you can see the true color of Intel ..."

Why should Intel cut quad core prices below $266? They still have to make profit. Building those FABs doesn't come cheap. $266 is an entirely appropriate price for the quad core CPUs. It's really a bargain for all that processing power that you're getting.