Capitalism. Now, whether you think it's profiteering is immaterial. The market has a way of "finding its own level". Therefore, if people are buying these items at "insane" price points, the market will then adjust its price to the level of those insane prices. Now, people might say that these prices are taking advantage of the unwary but others might rebut that hard lessons chide the unwary into becoming more wary.
"A foole and his money be soone at debate: which after with sorrow repents him too late." - Thomas Tusser
Something's material value is determined by the buyer, not the seller. The item in question is crap (especially now with the introduction of defiant range items...from a vendor). So if people still want to buy these things, that's on them. Don't hate the player, hate the game.