Why will the price never recover? Since the threat of a sudden increase in production has been removed, I would expect the price to climb. Or are you suggesting that no-one will want to buy Primecoin?
The price is not going to climb. The GPU miner was one of the things keeping the price from falling.
Nobody wants to buy a coin that is constantly shitted on by server farms and botnets.
Supply is correlated to diff, block reward = 999/(diff^2).
More importantly, if more people were interested in it, demand would increase.
People want a GPU miner to:
1. Make money with their GPUs
2. Make primecoin more popular by appealing to more people
3. Increase the strength of the network
4. Shift the ratio of legit miners/botnet owners
5. Decrease supply
The price will continue to fall until something gets more people interested in it.