Supply and demand it really isn't that difficult to figure out. It's basic economics.
Aside from it looking pretty on TV it doesn't really matter to the bottom line and in fact one could argue that selling the seats for $25 just to get people in the door isn't an economically sound decision. Iowa is probably making more money being close to a sellout then they would be if they lowered prices to sell out every game.
It's simple math. Don't get me wrong I think it's pretty sad they can't sell out a night game vs. Penn State but like I said in my previous post it isn't like this isn't a new issue at Iowa or just about any other school for that matter.
For me it's just the irony that they were so butthurt Game Day didn't come but then they'll have a list of excuses why their own fans won't go.