We are also talking about the 9800GTX+, which is better than an 8800GTS. A 9800GTX+ is on par with the 4850, which is considerably better than the 8800GTS.
As for the price, I don't know where you're looking, but all the etailers I check have a handful of GTX 260s for well under $300.
RFOMownage: DDR3 isn't an improvement. It's vastly overpriced for the same performance you could get from DDR2 for much cheaper.. As I stated before, current hardware can't really make use of DDR3 properly. If you want to use DDR3 so badly, wait a few months for Nehalem and X58 mobos.
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