That is an excellent point. The development costs of such low-volume projects are often way higher than the production costs. Having production in house or close often allows tighter, thus faster, prototyping and feedback during development, which in turn saves money.

The whole "But how can this be scaled and monetized" crowd here also does not seem to understand the point of such projects and Germany's Hacker community. It is about learning and just doing it, much less about building a high–revenue business.