My initial reaction is usually to take offense but isn't it the job of the buyers to set the market value? If someone is willing to pay 225 for a Schwinn Traveler (as they do here in New York), then they either didn't need the money that badly or didn't do their research or a combination of the two. I check out what I ought to be paying on items much less valuable than a bike.
That said, price-gouging opportunists are pigs in my book. Kind of like using 'it's a free country' as justification for being a selfish jerk...sure you can, but really should you?