The Deluxe Set is an incredible value at $350 since getting Nintendo Land and the GamePad charge stand separately is already $80 and that's before considering the Deluxe Set also comes with 4 times the storage and the Deluxe Digital Promotion.
That's ultimately the problem with the Basic Set. Like the 3DS, it was overpriced to start. If the Basic Set was the only SKU available at launch, I wouldn't have bought one. It looks especially bad right next to the Deluxe Set which even if you have to read comparison literature or ask a sales clerk, you would immediately see why it's so bad (at $300). Best Buy has gone as far as giving away Nintendo Land just to make it more enticing, even though the Basic Set is aimed primarily at people who don't want Nintendo Land. The Basic Set is just not a good deal. That's why Nintendo is admittedly having such a difficult time selling it. I agree that a price drop looks bad so close to launch. However, they have to do something to help boost sales of the Basic Set.
Discontinuing the Basic Set would allow those parts to be manufactured in Deluxe Sets. I believe Iwata recently said that some people who wanted a Deluxe Set couldn't get one. Well, if there were more available, they may have. Still, I like the idea of 2 models so long as consumers are given a real reason to consider the Basic Set. As it stands, it's the sucker's model.