Money ... If there's one subject I'd like to avoid during vacation it's money but here it is in my face whether I like it or not so eh ... Let's keep talking about it then! ... sigh ...
You're right. The simple fact that when I put a tiny 10% discount on my game that my sales suddenly raise because of additional (but still very limited) visibility is proof enough that there are plenty of people willing to buy my game at $20. The problem is they just don't know about it.
When the argument is made for discovery using price I think it's approaching the problem the wrong way. I sure don't discover and get interested in new games by only reading something like "New indie game released for $5".