Apple doesn't develop MacOS X and the iLife applications to make money selling software; they develop this software to entice you to buy Apple hardware. The price that you pay for Leopard reflects this: You pay nothing at all if you purchase hardware, you buy $129 if you have existing hardware with an older version of MacOS X, and $199 if you have several older machines with MacOS X that you want to upgrade at the same time. If Apple were to sell the software on the open market, you would expect them to have margins like Microsoft, which would lead to a much higher price. In other words, every copy of MacOS X is subsidized by Apple to make you buy a Macintosh.
PsyStar isn't trying to compete with Apple. They are trying to rip off Apple by using Apple's software to entice people to buy their machines, but the subsidy is paid by Apple, not by PsyStar. Let them buy MacOS X at market value (that is at a price similar to Windows Vista Professional), then we can talk about competition. Or they could by the rights to BeOS, which is a fine operating system and should be going cheap now and surely they can make that work, if they want to compete with Apple.
Exactly. Some people don't understand this very basic concept (they need to get a job, get an education, read up on intellectual property rights).