Yeah, prices on bikes have dropped like a rock. Target has Schwinn bikes with 21 speeds, full suspension, etc for $200. There is no way on Earth that can be anything but utter junk.
Then there is the high end, which just keeps getting more expensive.
In a way, its kind of like the watch market. You can't get a decent watch for $40 anymore. You can get a crap one for $20, or a f*cking awesome as hell one for $500+, but because people don't actually wear watches anymore the mainstream market for decent stuff has gone. The same is true of bikes. Kids aren't allowed to ride them anymore since their parents are afraid they will be kidnapped, and the parents don't ride them because they are a couple of fat f*cks sitting inside all day watching CSI reruns.