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Does your motherboard support the Pentium D? Most should after a bios update, but it's worth checking. Also, is your processor really the bottleneck? Do you have enough memory, and is it dual-channel, for example?
The price is bound to drop, but it depends on how long you wait. Eventually, Intel will start with a new socket, at which point the Pentium D you could use will become rarer, and thus more expensive again.
And a final note: how long do you have your current system? Is the motherboard a PCI-express board with all the latest gadgets, or is it an older AGP board? Do you have DDR or DDR2? This could affect your choice, given the typical x year renewal period (as in: "I need a new PC"). You don't want to buy a processor now that cannot be used in an upgrade 6 months from now. At least, I wouldn't.
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