> though there are stringent regulations i don't think they are the limiting factor
This is exactly the limiting factor. I could build you a Pulse Ox device with a nice graph on a Raspberry pi in a few days/weeks quite easily and put it in a pretty case with battery power and connectivity to the internet and your phone if needed. A cool hobby project.
However, selling it as a Medical Device (those words have a specific meaning) will raise the price exponentially. Let's look at some of the things we need to take care of in order to keep the FDA happy.
Development process: the software & hardware needs to have been developed with a predefined process, with specific minimum steps taken and certain documentation needs along the way. This doesn't sound like a big deal until you realize just how much it can slow down the development process and add more cost. If I can't prove that those steps were all taken, then I have to create a validation process to prove that the part I bought off the shelf (like the Pi) is suitable for the task -- not a difficult thing to do, but all these little things add to the cost of producing something.
Supply chain: you need to be able prove the provenance of every item in your device back to the originating manufacturer. If the manufacturer changes something, there needs to be a mechanism so you can be alerted to evaluate if it has an impact on your product. No buying cheap parts from pulse0x7337 on Amazon.
Manufacturing: basically set out a process for building it and make sure there are no deviations from that process and be able to prove that you are always following that process.
Complaints: you need to have in place a method for users of your device to report issues with it and to be able to respond quickly and correctly, in some cases within a federally mandated time (if in the US) depending on how serious the complaint is.
Compliance: ensuring compliance with 21CFR is such a huge task that there are entire companies that are dedicated to doing this for you if you can't afford your own team.
Support: can't remember details off the top of my head but you are required to provide support for your device for xx years after you remove it from the market. This means the capability to answer user questions and perform repairs if needed.
So yeah, it might seem like an excuse, but it really isn't!