Outside the US, the 0.99 price point has been embraced by music services offered in Canada and the UK. However, due to the wonders of exchange rates, the actual cost of music downloads varies quite a bit from country to country. In Canada, Puretracks is selling songs for $0.99CDN, which works out to about $0.76US. In the UK, mycokemusic will apparently carry songs for £0.99, which works out to a whopping $1.80US.
As new players emerge, the price of downloads may stabilize, but until then there's probably a buck or two to be made muleing music downloads across international borders.