What they published of the interview did end up coming off unfortunately; the point isn't that gamers don't have enough sense to make up their minds on what to buy and when. The point was that it seems to me that we've lost a lot of our emotional connection with games, and I think pricing's part of it. I used to be thrilled when I got a new game and I'd generally play the dickens out of it. Now, it's so easy to get games at such ridiculously cheap prices that I'll buy games I don't even want on the off chance that maybe I will want the game later when it's been patched further, or when the beta's done, or whenever.
I'm going to chime in with what others have said: That's not a pricing issue, that's a market saturation issue. Games used to be far more unique from each other because they were a small market and you got them in a physical store, so even if lots came out, the store could only show you so many at once. Now you get the online and each store offers you hundreds of games to pick from.
You're missing my point; you're better off charging a fair price up front for the value you're providing and then not discounting heavily after the fact. That means that more gamers are willing to buy your game at full price, and when you put it on a more reasonable sale, you aren't driving people to buy it just because it is so cheap right now.
If the seller makes a sale simply because the person wants to buy it right now because it's on sale, then the seller is better off having sales like that. Since people like the idea of sales, and many of them are perfectly happy to wait for sales, then sellers are better off setting higher prices to begin with and then having "steep" sales that bring the price from an inflated point to a comfortable point.
Because of the sale-crazy culture that has been created by Steam, many people won't buy a thing unless it's on sale. It doesn't matter what price you charge them, they absolutely refuse to buy a thing for any value unless it has "-50%" or "-75%" next to it. Except, once it has that magic sticker next to it, they don't even much care about what the final price is. The starting price could have been $10, $15, or $25; as long as it say "On sale -75%!" next to the buy button, they'll get it. It's an addiction that grows into customers, and it's not really one that the seller is able to combat. Claiming that you can set a low price to start to get as many purchases is ignoring the entire psychology of the situation. Low prices will pull in more people, but it won't pull in as many people.
Actually, Pheace just put it perfectly right above me: When a game is $20 and 75% off you feel like you got a good deal on a high value game. When a game is $5 you feel like you got a cheap game. If you want people to value their games, then high prices and big sales do it better than having games that are lower price with small sales.