Oblivion Barding a "rip off"

While Bethesda has come back to the conversation, effectively stating that they're dipping their toe in the Xbox Live Marketplace waters with the pricing of the recent barding (that's "horse armor" to you heathens) update to Oblivion, I think my post on Joystiq yesterday pretty much sums up my thoughts:

I think the biggest problem (and it's been alluded to by others here) isn't that they're charging for the content, it's that they're charging too much for too little content.

As some have said, if this had come with an additional quest, they'd pay gladly. If this had cost less (perhaps half to a quarter of the price), they'd pay gladly. They simply mis-priced the content.

Looking to Rafi Mohammed (author of "The Art of Pricing) for guidance, perhaps this is a calculated choice. Release the content now at 200 M$P, and see how many bite. When the adoption rates tail off, drop the price and see how many more people buy it. Effectively, you'll find out what everyone's value proposition is for this particular piece of content.

In effect, the backlash indicates that Bethesda really misjudged the value proposition for this specific update.