Yeah, apple's memory prices (upgrades) seem to have gotten a lot more reasonable. Still a premium (esp. considering you give up the smaller sticks), but not so ridiculous as it used to be.
The labor is zero because they install it at the factory. Its not like they open up the brand new computer, take out the old memory, then put the new memory in. They just put it in when they are assembling the computer instead of putting in the base memory.