I think automation is the key for making profit out of melon farming. A decrease in price just means that a creative increase in automation capacity needs to take place. Pumpkins should give a slight edge because they don't require crafting... but automated farms can easily be converted back and forth between melons and pumpkins.
Just a note... I joined the server after the melon prices were reduced. I was not here for the glory days of high melon prices. I've been trying to figure out how to make money from melons at the current lower rates using automation and novel farming techniques.
