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Risky
Oh for sure it's a risky investment Ian. However the area where I expect to see rivals or other worlds who link to the main grid leading to lower prices is in terms of tier. That's more akin to webhosting.
Over time I would expect prices to come down. Indeed if LL had announced a new class of island on new hardware, that was actually cheaper, this would have made more sense. I buy computers year on year and have seen prices drop rapidly. What I paid for 500 computers five years ago was a hell of a lot more expensive than what I will pay this year.
If LL had announced a 30 day "sale" again that would have made more sense. However it's not just island owners who are hurt by this, those who have purchased plots are hurt too, it's too steep a price drop.