This is the kind of pricing philosophy that plagues HN (and I'll admit, I'm guilty of it as often as not).

The value of a product is usually not cost of labor + cost of materials, it's the value it brings to the buyer. $106.99 won't get me the same value, because I have to spend long frustrating hours trying to find a decent available domain name, then a few more hours going back and forth with a designer for a logo I may or may not like. Not having to do that is easily worth $143.01.

I agree that the domain system is horribly broken, but these guys are closer to a solution than to a problem.