Hutch,
When I first noticed this happening I was a bit disappointed but on further reflection I think it may be a good thing in the long run. Here is my rationale for this thought:
The lower cost kits will appeal to the younger folks that get dragged into the store by mom or dad looking for that trinket they just can't live without. Or it will appeal to that Grandparent that is in there and happens to wander down the aisle to see what they might pick up for little Jonnie or Suzie for birthday/Christmas, etc.
Both of these are good as in the long run it might introduce a youngling to a hobby that will in the end support us old crusty builders. We (old and crusty) have many other options and avenues to acquire kits so not such a big impact to us. So not such a bad thing after all.
That and Hans will have a bigger selection.