I very much agree with her. 99 cents is a great price for short stories and for limited promotions. But permanently selling a novella or even a full length novel for 99 cents? Sorry, but my work is worth more than that. Especially since I put quite a bit of work into making my e-books look as good as possible.
Besides, three of the e-books currently available here at Pegasus Pulp sell for 99 cents, because they are short stories under 8000 works. The Other Side of the Curtain as well as the next e-book project, which is already in the pipeline, both sell for 2.99 US-dollars, because they are longer stories.
The Pegasus Pulp pricing policy is also explained on the FAQ page.