I think its kinda wierd right now. An inn right next to the stairs to the upper gate (and a gateway to every qeust on the server) widely used costs the same as a seedy tavern in lower.
If you don't wanna lower the prices of the seedy tavern then up the price of the one thats the most convieniant (on the entire server) I mean 10 gold is ridiculasly low. it would also encorouge people to fan out. (I suppose you'll always get the few people sititng around the inn they don't stay in)