Yeah, I think the prices are crazy high, except for the Paddy Wagon which seems to be reasonably inline with what folks seem to be paying elsewhere, and does seem reasonable for what I'm getting.
I do already have a very nice road bike with gears. This bike is for riding around town, errands, going to school ... in short, things where I'll be locking it up instead of the more expensive road bike. I also really don't need gears for my day-to-day riding.