Fairly simple, basically we'd get several options for purchasing private islands so that you can have a more affordable one as well as the $295 a month option.
These would likely just run on the same hardware, so the same set-up fee, however they would have lower limits on essentially bandwidth use. So say the $295 machine gets a 100mbit connection, the 'budget-sim' would get 50mbit and support half the number of avatars, and cost less as a result.
This may depend on how LL's machines are hosted, but if you don't NEED a high-bandwidth sim, then it would be much better if you didn't have to pay for it. It also allows people to buy a sim, build it and then upgrade later as their traffic increases.
Though I don't really want to suggest it, one other alternative is to have shared sims much like the void sims, basically two whole sims on a single processor/core with half the prim and avatar limits.
Still bummed about the price-rise I guess, but I think that we really need more options to make islands still feasible for smaller businesses who can then go for the full whammy once they've expanded/gained popularity.