Only if you're the highest bidder without going over.
But seriously, it seems to me that the biggest competitor for the Envy is madVR itself. If Envy is too expensive, then most of us won't buy it. At Lumagen-like prices, many potential customers will just put a nice video card in their HTPC, install madVR, and call it a day. Or people will buy a Panasonic 820 for tone mapping ($500).
Lumagen is a long established brand that people rely on -- not a startup that could fold any time. The Envy would need to be a significantly superior product for people to pay that much for an Envy.
Many high end TVs and projectors also do some form of tone mapping, too. For example, my projector does tone mapping (JVC NX7) from any source. So for folks like me, we still get a very nice tone-mapped picture, no madVR or Envy required. Lots of people are getting spectacular pictures with these technologies already. TBH, I'm not going to pay $4K for perhaps a 5% better picture using Envy's real-time dynamic tone mapping, especially when my picture is already pretty fantastic.
That's why I think the sweet spot for the Envy would be $2500, maybe $3000 tops. It's not chump change, but at that price many A/V perfectionists may stretch the budget to buy one, rather than a Panasonic 820 or madVR-based HTPC. Just a guess. It'll be interesting to see what price point it comes out at...