The argument of the Nexus price is invalid for a large number of people.
Whenever someone points a flaw in a Nexus product I always hear the defense of it's price. What more do you want in that price? That is the classic argument.
However the problem is that the US \\=\\ world and Nexus products aren't that price competitive throughout the world as you may think. People wonder why the Nexus doesn't sell that much worldwide despite its sheer value for money. Well the problem is it's not really sheer value for money in all parts of the world.
I live in Pakistan and I am gonna give you a few examples of the prices here.
I was just shocked to find out that a 32 GB G2 is cheaper than the 32 GB Nexus 5. Why would anyone other than a hardcore stock Android fan buy the Nexus 5? The 16 GB Nexus 5 is only slightly cheaper than the 16 GB G2. So it seems like the G2 itself cripples the Nexus 5 but that's not it.
The Galaxy S4 16 GB is cheaper than the 32 GB Nexus 5, now because the S4 has an SD slot so comparing its price to the 16 GB Nexus 5 isn't exactly fair but even then its only slightly more expensive. Now you would say that the Nexus 5 is better than S4 but that's not the argument here, the Nexus 5 is supposed to give extreme value compared to the competition but when you pit it against an S4 which basically costs the same then that's not the case anymore.
The HTC One 2013 has the same price as the Nexus 5 32 GB. This again clearly challenges the Nexus 5 as the value for money champ.
The conclusion is that Google should either find a way to keep their phones cheap everywhere in the world or start making better devices.