Photoshop cost $700 because people are dumb enough to pay it.WHY DOES PHOTOSHOP COST $699??? I can get tons of software for free and use them to do some of the same things photoshop does. How can adobe justify this RIDICULOUS price??
Adobe has a virtual monopoly on the high-end graphics market, so they can jack the price as high as they want and you have no alternative except to buy it or pirate it.
They've also jacked up their copy protection, further forcing people into paying $700 a pop.
A large percentage of copies are sold to businesses, so the costs isn't a factor.
If Apple (or some other reputable company) were to come out with a legitimate competitor at a more reasonable price, photoshop's price would drop like a lead balloon. Until then, you're screwed.