Exactly. I raised my price on ThemeForest from $49 to $79 because outside of ThemeForest I've sold just fine at $79 - $99. Virtually none of my customers complain about those prices. But, as soon as I raise my price to $79 on ThemeForest, I get a comment saying the price is a rip off. I believe ThemeForest's pricing over years has conditioned their buyers to expect dirt-cheap, and that that has been a disservice to everybody. Even so, my theme seems to be keeping pace in terms of revenue so far.
Thank you, because this is the first time I've heard anybody in the WordPress community say this. I've sold at $50 and I've sold at $100. Ask me which I prefer and I will tell you absolutely $100 for exactly the reason you stated. My revenue has not dropped but my support burden has. Am I the only one that wins? No, the customer wins too. I have more time to dedicate to supporting each customer and I have more time to spend on improving what they've bought. Guess what? That makes them more likely to renew too.
ThemeForest's decision to let authors set prices is hugely beneficial and I hope theme authors will be bold and take advantage of it for everybody's sake.
I hope they do that. I'm pretty sure the reason authors on the Popular list are not really raising their prices yet is because ThemeForest hasn't done what you suggest. They don't want to lose their rank. I'm gonna call it... If and when X Theme or Avada raise their price to $99, you will see that they don't go back down - because they will earn at least as much but with less support burden. And that will encourage others to creep up too.
A free market works. It will be interesting to see how pricing and expectations change over the next year or two.