I don't think I've ever seen a repair cost that close to the original purchase price.
What's the point?
Actually, it's similar for Apple Watch, too.
Yes, there are some products, that due to their design, are very difficult to repair cheaply. Either the parts cost is high, or the labor cost is high. Sometimes both. I'm waiting for an iFixit teardown. I'd expect, however, that there are probably no more than 3-4 major modules, each fairly expensive. If there is liquid damage, there's a high probability that more than one of those modules will be impacted (much like the likelihood that you need to replace at least the keyboard/trackpad assembly and main logic board if you spill on a MacBook). The outer grill cloth will have to be replaced... by the time it's done you may have a 50-75% new product, but hand-assembled by a trained technician, rather than built on an assembly line by semi-skilled labor.
I really don't know what people expect in the case of a failed keyboard. The only reason they're as cheap as they are to begin with is because they're uneconomical to repair - machine-assembled, single-circuit-board. Say you could isolate the keyboard failure to a single switch - it takes considerable time to open the case, ensure that switch is the only one that's failed, then desolder and replace the part, then reassemble and thoroughly test. By the time you add up the labor costs/bench time, plus shipping/handling/processing, you're going to be up over $100 billable. Most people would much rather have an all-new keyboard at that price.
Something many people don't seem to appreciate is that repair is a business, not a charity. Whether as an independently run repair shop, or as a repair shop owned by the manufacturer, there's little reason to offer out-of-warranty repairs unless there's some sort of profit to be made. Further, there wouldn't be independently-run repair shops at all if the manufacturer's repair prices significantly undercut the independent shops. Manufacturers need independent repair shops, as much as those independent shops rely on manufacturers to make the goods that will require those repairs.
People capable of doing their own repairs rarely put a dollar value on the time they put into the repair - not only the time spent with screwdriver and soldering iron in hand, but the time it took to learn enough to be competent at doing the repairs, researching, shopping for parts, etc. Employers have to pay for all those things and still be left with money in the till at the end.
When I ordered my HomePod I did think three times about buying AppleCare - I ended up doing it. The price is very low, reflecting the relatively low chance of having a reason to make a claim against it. The deductible charge to be paid if there is accidental damage also reflects that reality - if the expected incidence of claims was higher, the deductible would also likely be higher. But, since at least some people will be moving these things from room to room, setting them up in party environments, kitchens, bathrooms, etc. - even when taking care to keep them far away from the running water and punch bowls, all sorts of bizarre things can happen (does a drunk dropping a HomePod count as liquid damage?). They don't call Murphy's Law "the Law of Random Perversity" for nothing!
