That's fine. If they lower their price quickly back to $.99 Apple can ban them (and has stated they will ban developers engaging in blatant price manipulations). If they don't, no one will buy it, and if some poor schmuck does he will get a refund on an accidental purchase.
Why would apple want to ban people from dropping the price of an app from $999 to $0.99? Are they just trying to make sure that people who buy at high prices don't feel bad about their purchases?
It's trying to game the app store.