I'm a much less sophisticated land owner than most of you. I am a premium member mostly because it amounts to a [nearly] free house. You pay the annual and collect the stipend which mostly pays for the annual. I have a basic linden home in some generic subdivision somewhere. It wasn't the home I wanted but it was good enough. I would love a nicer house (better laid out) on 1024m with the extra prims to decorate with. I would also love something that vaguely resembled "community". I doubt I'm going to get that... ever. So to me, this is just a price increase with no benefit attached. What will happen is that my premium account (ie, my linden home) now costs me more per year.
Overall I wish that weren't true but I certainly re-upped my account during the grace period (which I was lucky enough to find out about and take advantage of). Whether I do so again for another year remains to be seen.
What I wish is that the process for getting a new home wasn't so incredibly disruptive. You actually have to become homeless first and then you can spend all day every day clicking refresh on the web page hoping to see whatever it is that you wanted. As processes go, that's pretty much ridiculous. Overall, I find most of the processes around premium accounts and land ownership in general to be more than a bit opaque which probably leads me to not utilizing the benefits I have very well. I've been in SL for 12 years now (on and off -- mostly off) and I still have no idea how to buy a mainland parcel and a ton of other things that ought to be pretty basic but instead, are wrapped in layers and layers of crap.
So I'll probably end up staying in my current home and I doubt I'll ever know if or when it might really be possible to upgrade it. To me, this cost increase will remain a pure cost increase with no additional benefit attached. Whether that drives me to downgrade my account or not we'll have to see in a year and change when I have to pay up again.