It's just the way with indie games nowadays. To stay competitive you need to bend to the set price points. I don't think steam will be fruitful enough at a price higher than $10, the gameplay and graphics (as much as I love them!) just wont convince new users to take a second look at it compared to the other flashier titles out there. When I first saw the banner I thought eww what's this dated thing must be some no-name euro group trying to make an rpg. I clicked on it out of boredom and saw a familiar iso setup and then saw the words spiderweb software and began drooling
But that's because I've played exile/avernum, so I know already that this game will satisfy my gaming NEEDS. But charging $20 or more, most people will just skim over it if they don't recognise it, and go for a $30 ageing AAA title that has a decent multiplayer base for their replayability.
Is this a good thing for indie developers? Well it gets them more exposure, so I'd say yes.