On the problem of all games being either $60 or $15, there definitely needs to be more variable pricing. More importantly, developers and publishers need to be more realistic with sales expectations.
First of all, I think Jeff and people like him are addicted to the $50 million production value game. That's like being addicted to moves like The Avengers and The Dark Knight Rises. A lot of them maybe great, but they aren't the only great movies/games. I think this is definitely more true of games, where it seems production values have almost no effect on how fun they are, just how pretty they look and sound.
Secondly, publishers need to realize that every game is not going to sell 5 million copies. Last generation 5 million copies was considered exceptional. Even 1 or 2 million copies was usually considered extremely good. 5 million used to be a number associated with the likes of Halo, Zelda, or Final Fantasy. Expecting your average action game to do that much is just silly in my opinion. Publishers I think need to realize that, reign in the investments they put into a game, and maybe market them specifically towards the hardcore audience.