Off course that this will lead to race to bottom. I really don’t mind much about Envato assurances that it won’t be so. There are some reasons behind this decision which Envato won’t share with us, off course.
Setting the lower price limit would be wise, but Envato already said there won’t be any limit.
Changes are not always heading in good direction, and this one certainly won’t be a good one, at least for majority of authors here. For Envato it probably will be.