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Photoshop doesn't need to be cheaper, people just need to stop seeing it as the equivalent of freeware. If they want to pay only $100, they already have choices. People can pay for Pixelmator on a Mac, they have Sketchbook Pro by Autodesk, Painter Lite by Corel, and so on. And if they don't like it, then honestly, look at the bigger picture - That is what a $100 investment gets you.
Simply put - If you can't afford it, then don't use it.
Adobe already has Photoshop Elements by the way, people just don't like it because they want the tools that are in the Pro version. And those Pro elements are what makes Photoshop Extended expensive.
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