We can haggle over the ideal price but I do see sense in a cheaper version without the AI to appeal to more cost conscious people - I am a Kagi subscriber I never use the AI part (but I'm not so bothered that I'd demand a discount, maybe others are)

Same here. It's not a big difference but that's what you get when you're right at the cut-off point. At $10/month, I find it hard to justify switching from duckduckgo when the results are not noticeably better (I've tried). And as someone who's online a lot, I'd be out of queries in a not-so-extraordinary month on the smaller plan (I've tried). Adding 20% to the smaller plan (in queries and in price) would make more sense for me than going for "unlimited" at twice the price (just quote me a price per query please, it's not as if each additional query costs you nothing)

There are also real downsides, like needing to be logged in all the time. I can visit ddg.gg on a customer's laptop in 0.2s, but won't be logging into my Kagi to do a quick web search

I also don't need anything but search and image search: for maps I use OSM, for LLM inference there are various free and paid providers, for videos one sadly doesn't find much outside of youtube anyhow (save for specific genres like conference talks at media.ccc.de, in which case I already know where to go). All this stuff included in the ultra fancy plus version incurs costs for them so it makes sense that it's not in the base product, but I won't use it so I feel silly paying for it