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The love of XP is a result of people that have never used an operating system other that the released versions of Windows (i.e. everything up to and including Vista). I doubt that many people who have tried a modern Win7 beta, OSX, or Linux distro are clinging to XP. Then again... Vista got slow and...
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I can believe the full versions might cost more: It sounds like a calculated plan to get extra money from businesses that skipped Vista, and to gouge OEMs for more per PC. But, I expect upgrade versions to remain the same cost. They might even be cheaper. There simply won't be any "killer apps"...