You need to be more ambitious if "razor thin margins" and "successful but broke" are your definitions of phenomenal success. I aspire to be phenomenally successful but I'm still working at it.
No, I think profits can be considered separately from success. Again, you can be successful (500K+ sales, seriously, do you not consider that to be at least the slightest bit above average for an indie developer?), but not make a dime. Number of units sold, critical acclaim, making the world a better place.. all ways that you can be successful without making money. You are successful. Whether or not you are rich is a different story.
Your vision of success obviously includes financial gain, which is fine, but does not change the fact that you are successful in other ways. I would now question: if you don't consider yourself all that successful, why would you put forth your pricing scheme as the best way to go? Have you considered that you might be more successful (monetarily) with higher prices? What would have happened if you put out CSTW at $5?
Personally, I think that I have been successful, even though I'm only looking at tens of thousands of games sold, not half a million. I've managed to get through the mean streets of XBLIG and moved onto Nintendo and Sony platforms. My margins are really low, basically just the dev hardware and a few assets here and there, and I don't have staff to worry about paying.
It's unfortunate that it appears there are members (including some developers) who did not read the OP or not focusing on what is being said.
Unfortunately, there is a little bit of pent up anger I have about some recent incidents that indie developers have caused lately (e.g. Sunset) and I may be coming across more aggressive than is intended.
The OP makes some very good points of the perceived value of games and what developers think they can charge for their games. Whether you like it or not, games are compared to one another, that includes all games, it doesn't matter if they are indie or AAA. When an indie game is competing with Child of Light or say Far Cry 4 that is on sale, while a gamer has interest in all those games but not enough money, which one is going to get picked? It doesn't matter if a developer thinks the price they are asking is worth it based on dev time calculation or personal feelings.
Before I used to buy all indie games that caught my interest on PSN due to their impulse price range and positive impressions. Then they kept getting more and more expensive over time, I stopped buying them. Now I only buy the best ones or most interesting when they're hugely discounted.
This is just an example that doesn't apply to everyone. As is apparent, there are members in this thread who are willing to pay $60 or more to get the games they want. I feel that those members are the minority. Sales are being missed of impulse buyers or ones who show interest but are scared off by the prices relative to their perceived worth.
I don't think the OP is advocating for a standard price for indie games (it's the opposite in fact). What's being said is, indie developers need to have an understanding of how consumers look at their games and what their comfortable level is at buying games for certain prices. It is important to keep that in mind along with the target group you are trying to reach. Are you comfortable at the possibility of only reaching hardcore gamers who are willing to pay more but end up sacrificing sales and mindshare?
Yes, Robert makes some good points about the perceived value of indie games. However, instead of trying to change the perception among players, which indie developers need, he would rather (in my interpretation of his comments) have all of us lower our prices. This race to the bottom ruined the XBLIG marketplace and, in my opinion, has permanently ruined the mobile marketplace (which is why I won't touch it at all). Instead of trying to convince indies that our games aren't worth it, we should be convincing players that our games are worth it.