But wouldn't the developer discount their app if they don't get the sales numbers they were after? If I were selling an app at $5 and no one bought it I'd try to price it down to $2.50 or something and see how it went. Isn't that the process you're talking about?
Isn't that the same as your $10M house example? If my house were on the market for $10M and no one bought it, then it'd be on the market for a year (or month, whatever) before I finally cracked and reduced the price to something that would sell.
Sure the app store doesn't have that direct price negotiation but neither does a website with an app for purchase. I can't just negotiate a cheaper price with Adobe for Photoshop! But Adobe can reduce the price of the software if they feel the lower price will yield more sales.