If you really believe that's too high a price, Duane, you should absolutely not pay it. The market's going to be driven by demand -- not to sound like an economic scholar or anything :p -- and it'll probably be pretty unpredictable for a little while in the early stages of the RMAH release. But we really shouldn't be in the business of dictating what prices should be for things.
Your point about auction house clutter, however, is duly noted. I think a lot of that has more to do with our need to make some additional improvements to the auction house UI and search functionality.
Thanks for the response. In most advanced economies you are right, demand drive prices, however there is always an initial outlay of costs in order to sell goods; that might be a shop front, education, advertisement employment etc.
Right now we have in D3 the equivalent of every man and their dog standing on the side of a street selling wares at prices that would make the 3rd world shed a tear. They are wasting everyone's time whom they try to sell to, and pay no price for failure, where in an advanced economy, failure is punished. This helps to normalise the economy, it happened in wow (listing fee) but not in D3. It is a critical failure of the Auction house, and I think that most people would agree that the AH is a critical part of the game (for better or for worse) and sadly it really does fail the game.
Additional search functionality is absolutely required (only being able to search for 3 stats is indeed a pain) but it doesnt fix the hyper inflation issue that will occur. when this does occur, new players will be so far behind the curve that they wont bother completing the game past normal, and then D3 spirals into obscurity.
Surely given the investment that blizzard hopes to gain from the game and the deal with the RMAH, it is in their interest to keep the economy stable.