Wow. I thought they probably wouldn't raise the prices this year, but can't say it's shocking. Unfortunately, I would have to say that this is a small enough price increase that it is highly unlikely to cut down on the number of people who buy Genie+ this holiday season... therefore, it's unlikely that this change is actually going to benefit guests by improving capacity. I'm pretty confident this will not be the last price increase we see - they just can't do it drastically at one moment. I imagine they will keep increasing the price of Genie+ UNTIL significantly less people buy it.... and at that point, the service will improve for those willing to spend the money.
I will say - I STRONGLY prefer price increases to capping capacity and making buying Genie+ essentially a stressful lottery for those willing to stay up until midnight and race to purchase... just like getting ADRs or SDD. I would rather know I CAN get Genie+ if I want to budget for it than have each day be a stressful "what if I can't get it today." Of course, price increases also make significantly more sense for Disney, and I'm not going to blame them for not leaving money on the table. People have proven this year that they are willing to pay whatever Disney asks. Until that's no longer true, prices will go up.
Also wouldn't be shocked to see Disney go back to offering Genie+ as a discounted whole stay add-on at some point. People may ultimately spend more money buying it for days they don't need it, but they'll FEEL like they saved money. The exact same racket that the dining plan is.