Yes, the D80 is a slightly cheaper, street, than my D70 was when I bought it. Of course you get much more for your money now so it's kind of hard to compare price bands without looking at what the rest of the market is doing over the same period. I do agree with you to an extent though.
I think it's not so difficult- Canon's 450D (XSi) is their entry level, and it's priced right around the D80 price point. People keep trying to compare the D40 to it, but they're actually aimed at different market segments- the D40's just good enough to compare upwards favorably. The market has moved what constitutes an entry-level camera pretty-much evenly, so the comparison washes there, it's just that this D40 price point body has fouled the normal logic.
Personally, I think Nikon's low-end strategy was pure genius, and I'd have probably kept at it if I were them, but the whole megapixel myth is against a 6MP dSLR at the low end, and the D60 is actually good in the bang-for-buck category. The resources to keep chunking out low-end consumer SLR cameras is probably cost-prohibitive as a continuous strategy, and if their new strategy is to do a year or two of low end then a year or two of high-end, that may place them very well in terms of share and profitability. A lot depends on the raft of 5% or less of the market companies (though I'd probably argue that the dSLR side could use 50% of the Nikon P&S resources and it'd be a bargain on both fronts.)
What's interesting to me is that Canon never went that low- preferring to let Nikon battle it out with the also-rans. I wonder if Nikon's now seeing what Canon saw all along, or if the Nikon strategy is really to hit the entry-level market every few years, then give them bodies to upgrade to. It'll be interesting to see what Nikon's strategy is next year and the year after to see which way they're leaning. Especially now that Sony is apparently about to do the raft of consumer dSLRs camera thing.