I understand it, I just don't agree with it. The biggest problem with "niche" titles is name recognition. And my point is that they aren't going to get it when they've priced themselves out of the market. This game isn't any more niche than any other board-game-to-iOS-port (Catan, for example), but they aren't going to push into the market any more with their current price-point.
I think the developer painted themselves into a corner in this case. They put this app out and gave a time limit that it would be half price and promised when raised it would never drop again. Now they are considered assholes if they drop the price and considered idiots if they don't. Personally, I am impressed that they've stuck to their word this long. Must be awfully tempting to get that huge influx of cash.