In most areas, prices have definitely dropped.
Today, you can buy a processor-based, FM radio for around $130. A decade ago, you were lucky to find any FM radio for less than $200.
Today, RTR kits come well-equipped and still hardly cost more than a bare kit did a decade ago.
I think Josh is right in that many manufacturers have bore the cost of rising commodities, but I also would like to see more money going into Research & Development. I'm not naive enough to believe that the RC Industry will ever be at the forefront of technology to the extent that we will actually see new materials, processes or other types of technology emerge through this industry. We are actually quite far down the "trickle down" pathway.
This isn't a criticism of the manufacturer's, though. I think they've all done a great job, considering the size of this industry, but there is definitely room for improvement. The truth is - I am amazed that it has taken this long to implement Spread-Spectrum Technology into our radios. But now that it has arrived, I am looking to the RC manufacturers to quickly implement it across the board and not just reserve the technology for their high-end products.