I honestly don't think pricing domains at 100 quid each would make a shred of difference in the market that matters i.e. the really prime domains that suit both domain investors (a better word than speculators, perhaps) and end-user companies seeking to secure a generic name for their sites.
Of course, it would clear away the fluffy halo of junk domains floating around the core registrations I referred to above, but nobody's paying real money on the aftermarket for these kind of junk names anyway (since they're of no use to anyone) so the difference would be statistical rather than actual.
In the .com market (which is more advanced than .co.uk and may hint at what is coming along a couple of years or so down the road) many domains are bid into 4- and even 5-figures at drop time, and it's almost impossible to find something like a 3-letter .com domain under $1,000 or a 2-letter under $15-20K.
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