It gets smoother and smoother the more you use it. It kept getting smoother for over three weeks. If you otherwise like it hang in there.
They are not made in Taiwan to reduce cost. Taiwan is not China, think of them more like you would Japan, or South Korea. Quoted from Wikipedia, "The 19th-largest economy in the world,[24][25] its advanced technology industry plays a key role in the global economy. Taiwan is ranked highly in terms of freedom of the press, health care,[26] public education, economic freedom, and human development." Not your prototypical China anymore. They are made in Taiwan because Spyderco is currently expanding Golden, but the Taiwan manufacture was ready to produce knives, and can produce a high volume of quality folders fast. Spyderco cannot even keep Golden produced knives in stock. Also, find me a new $165 0550, I see them going for $200, and $225 (I paid $228 for the Southard, more knife, better steel) for the newer black version. The 0560 is a better comparison, and costs $20 more new. The Southard has better steel but is smaller and the 560 has more machining on the Ti, so they are about on par imo. No price gouging imo, compare other Golden knives to other Taiwan knives, and it does not matter where they are made they are about the same price for what you get. Check out Spyderco's subforum, Sal explains exchange rates, and labor costs for different countries, and the truth is a Taiwan made knife is just not a much cheaper way to make knives. You have to ship all the materials to Taiwan, then have them assembled and finished (with labor costs a bit lower than our labor costs), then shipped back. It is about a wash in the end.
To answer about the costs, I would bet that the new price will go down. All Taiwan made knives have had their new price go down. It seems too that the higher the initial price, the more it gets a reduction in price. This is just a trend I have noticed, and would bet it would be another three or four months at least before you see prices going down. The prices do vary quite a bit, I paid $228, while I have seen reputable dealers selling them for $260.