This is another example of a company trying to price software like its a physical product.

The justification for the price is laughable; just because it contains more features than an unrelated product (for which it is not even a feasible replacement) is not going to convince someone to pay for an iPhone app 25-50x the normal going price.

I'm venturing a guess here by saying that a good portion of the market for graphing calculators is comprised of high school and college students, and I don't know of one teacher who would allow an iPhone during a calculus or physics test.