It clearly wasn't the point. Analysts who have a much wider audience than actual insight felt that the 'C' of the leaked '5C' moniker was for 'cheap' instead of 'colour'.
It's an iPhone 5 with a cheaper bill of materials for Apple, so that they could drop the price $100 when they dropped the iPhone 5 into the middle of the range and keep their margins up. The iPhone 5C fills the role the iPhone 4S did, following the iPhone 5's release.
This year we're going to get an iPhone 6, the iPhone 5S will probably become the iPhone 5CS and the iPhone 5C will replace the 4S, with the price points remaining consistent with every year they've had three models for sale ($0/$100/$200 in contract markets, and falling wherever they fall in non-contract markets).
Edit: Just to drive home my point:
@ $200/$100/0$ with contract:
2009: 3GS/3G/-
2010: 4/3GS/-
2011: 4S/4/3GS
2012: 5/4S/4
2013: 5S/5C/4S