There wont' be offcial price cuts, because Intel is not about to debase their own profit margin just because they pushed out new processors. But the prices on older processors will drop simply because vendors will want to clear out old inventory, or OEM chips previously earmarked for OEM builds. Once everything's done, production will stop and you'll only be able to buy used processors.
Celeron E1xxx will be bottomline priced around $50 per 1k, and that's the reason you're seeing Pentium E2xxx price stabilized over $60. Both will exist for now. The reason Intel revived Pentium branding for dual core is so they can show market that Pentium is old technology, and this way people will look down upon Pentium IV/D and all other Pentium related technology in favor of Core 2 series.
The E4xxx "Conroe-2M, aka Allendale" will terminate, the line ends with E4700 with 13x multiplier. Higher FSB processors will start the E5xxx line. The E6xxx will also terminate as stated previously. The E8xxx will be the new high end dual core.
The entire Intel strategy has shifted somewhat predicated on AMD's inability to take Intel on the high end speed. So now Intel is focusing on lower-mid market segment knowing that's the turf AMD will be fighting on. We'll see E1, E2, E5 and E8, and Q9 pretty much becoming the standard Intel offerings for 2008.