They're definitely pricing a lot of folks out. The days of shared web hosting accounts (with cPanel) being a couple dollars a month seems to be behind us. Hopefully this is more ammunition for a competitor to rise. I don't personally care for DirectAdmin though.
The issue I think will be, hosting providers will just pass the price increase onto their customers, and it'll become more viable to go with VPS or dedicated hosting vs shared soon. Which is sad. I pay about $75/yr for my hosting on shared and if the price goes up, I might have to consider upgrading to a different plan.
As someone who has been shopping around looking at web hosts, it's crazy how many web hosts are no longer offering cPanel by default. For the most, I'm seeing that it's something else (such as Direct Admin), and then you can pay a fee to add cPanel. It's a major change in the market. At the rate we're going, cPanel probably won't be the standard down the road.