The 'Extreme' series has always been the most expensive processors from Intel. It probably has to do with the fact that those are factory-overclocked processors and not many people buy those. I'm thinking their performance is pretty good, but just like Quad Cores some time ago, their price just doesn't match the performance. Since the latest price drop anyone can afford a Q6600, so ... I'd say what are you waiting for?

It will increase performance ... I've played the World in Conflict demo today (great looking and quite heavy game) and it ran better on my Quad Core rig. D3D do you want to play the latest games on their max settings? If yes .. then go for the Quad Core. If you're short on cash or don't play games that often you could theoretically consider a Core 2 Duo, but since the price of the Q6600 is this far down, it's practically a no no... I won't be buying a Core 2 Duo or Dual Core processor anymore, that's for sure...

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Also why is the C2D Extreme CPU more expensive? The price went up the last few months while other CPU's got cheaper after the Quad core came out.
You mean prices changed at the alternate.nl or azerty.nl stores? That's normal because those prices are based upon their stocks, a fluctuation of about 30 euros at it's max is quite normal. My brother bought his HD2900XT for 360 Euros, I've bought mine for 380 Euros at the same store a bit later...
Cheers