I actually got slightly burned when they did that update. I was doing deployments by "slug" (their term) and the old slug went up to $10/month when they created the new 1GB $5 droplet option. Now my system double checks the price before deploying a droplet.
I haven't checked their pricing in a while but I think the $5/mo droplet used to be 512m but is now 1G ram, right?
It sounds like there's also a $4/mo smaller droplet with 512m ram.