I feel a bit smug (but also a tad embarrased) that I got an immaculate 21mm for £250 and the 40mm for £180. Gutted though that I was planning to get the 70mm £389 at SRS. Looks like that is not going to happen now......

It's not just Pentax.
Sony - Zeiss Lenses are expensive
Nikon - New bodies and New lenses are pricy
Canon - L Lenses have gone stupid, and as for the new 5D and 1DX....

Yes all are whacking up prices at the moment, almost pricing the enthusiast out of the market for the top notch stuff. It seems a general re-alignment of prices to the pros who either have the purchasing muscle or have an employer who will buy the kit no matter the cost (the Press)

There is another thing that could be possibly feeding these price increases, and looking at the Leica price hikes over the last couple of years, could possibly the whole reason.
The Chinese market! This as a market that is booming, and they are getting their hands on anything that is quality and "western", especially cameras (and I consider Japan as western in this). As a result the marques are creaming this market as much as they can (and who can blame them), but the downside is that the rest of the world are suffering as a result.

I am so glad I got the 21 and 40 when I did, but kicking myself I did not get the 70 at the same time.......

Not quite "converted" but helped with purchasing their first DSLR
Both my parents got Samsung GX-1s (aka *istDS2) on my advice, as they were a bargain at the time (a mere £250) However my mother could not get to grips with a DSLR and ended up with a Fuji S series instead. Now however, she has got A Fuji HS20 as she wanted more control (it takes time with my mother) In the meantime, I am the keeper of her GX-1s until she is ready again. My dad? well I does use it from time to time, but ultimately, he shoots video when they are on holiday. I am sure if he gave it a dust down, and wanted stills, it will be used more.
A colleague at work wanted advice, and ultimately got the K200D. Now he has that, the grip, Tamrons 10-24 and 70-300 and the fine 50mm F1.4. Oh and yes the AF 540 flash too. He is really enjoying the kit.
Other friends are far too gone down the CaNikon route to change really (and we are talking about EOS 1D, 5D, 7D, D3, D300s etc. But do appreciate the Pentax images I take, and love some of the flexibility. But, when you have several L lenses, it is hard for them to swap. Never Mind.

Interesting though, the FA Limiteds have not increased in price.....
Mind you this is US prices, maybe Pentax are now looking at their market, as they upped prices on ours a couple of years back.

Thanks Robin for the heads up. I think the other guys will enjoy a trip to the brewery too.

Don't worry Dave, I have and I will.

I have both the 21mm and 40mm now for a week, and I am loving them both. So Sharp! The Limited Legend really is true! I don't know why I did'nt buy some limiteds earlier.

They are so tiny, in fact on another thread I asked about a bag for travel where (I thought) my Lowe sling 202 would not be enough. Well, currently in the sling is the 21mm, 35mm, 50mm 40mm, 105mm macro and 50-135mm. Oh and yes still plenty of room for my Pano LX-5 too. The tiny lenses are stacked, yet still very easy to get at. With a bit of re-arranging, I will be able to got my MZ-5n and 55mm in too.

So you you could say I am a very happy chappy.....

TBH the initial price was a bit steep, but now it is getting better. Not perfect, but better. Possibly, if the price went down to around £350-£400 for the dual lens kit, then it would hurt sales of "Premium" compacts.
As it stands, it is more of an indulgence, and a non-starter to those who don't understand it.

Apparantly, the online shop - Park Cameras - have not sold a single one. But again that was only in Feb, and possibly that has changed.

It is a beautifully made camera with great handling. But unless people understand the IQ of Pentax lenses, they are going to go for something different, which is a shame.

Personally I would ignore the K100D as it is in reality only a rebodied DS but with a pentamirror and shake reduction.

On your limited budget I would either go for:-

Another K10D. You already have one and it will be natural

or

K20D. Same body, same battery, same grip, same buttons and menus. Only addition is the X-sync socket for flash. Oh, and yes a rather good sensor (not in K-5 league but good nevertheless).

Hope this helps

"Hope springs eternal" as they say, but I won't hold my breath.
Still if it happens then great, I will save up for one.

Well I am now the proud owner of both. Looks like I am going out this evening to have a play with them.

Thanks for your advises all.