Is Yahoo Gouging For Domain Registrations?

A thread over at WebmasterWorld has reported that Yahoo will be increasing its charges for domain registration as of July 1, 2008 to $34.95. Now I have not heard that the major domain registries have increased prices so is this another way Yahoo thinks it can help increase revenue?
Most companies charge about a third of the new price so it looks like Yahoo will be losing a lot of that business. Guess the ones left will pay extra and Yahoo can cut back on staff.
This is not a smart move given all that is happening right now. Almost looks like they don't want to do it any more and figure to just boost the prices to a level where everyone leaves.
The price seems to include a starter hosting package. Curious would this have a spill over effect on visitor counts to Yahoo? Does it force sites to include Yahoo links or advertising?
I know gas prices are increasing a lot of goods and services but there is no gas needed to do this service.
Yahoo may want to reconsider this move. Sounds like desperate measures.