I signed up too and then saw the ridiculous prices and policies. Happy to stick with .com for 10 bucks.
I would really prefer using chris.blog instead of buying a .com domain like this-is-chriss-development-blog.com, just because any shorter .com domain is already taken.
So yes, a one-time fee of $250-$1,000 feels ok to me, especially considering what Automattic paid for the TLD.