I don't believe the price drop will do much to spur Kindle sales, especially in these times. In order to have a significant, mainstream impact Amazon would have to:

1. Drop the price below $200
2. Drop the e-ink screen in favor of hi-density LCD to increase contrast levels, cure the screen flashing problem, give color and backlighting options, and reduce manufacturing cost.
3. Drop ebook prices to make them an incentive to purchase the hardware
4. Drop the DRM protection
5. Drop any control over materials already in the users possession
6. Separate Kindle accounts from Amazon.com accounts
7. Add user replaceable battery