It's a pretty bold statement to say that they are making "great cases..." for $1 to $2. Great cases are a rare thing, and few brands make them. Sure, some are probably OEM'd in China to cut costs, but they are designed and spec'd elsewhere. I also wouldn't say that anyone is making big profit selling cases at $1 to $2, by North American or European standards anyways. Big profit is a relative term. What do you consider big? In China, where the average wage may be $300 a month or less, making $100,000 a year would seem big I would imagine. Here in North America, not so much.
Companies aren't attempting to fool customers by selling their cases at the cost that they do. The selling price takes in many factors such as market conditions, cost of manufacturing, development, marketing, warranty, wages, taxes, transport, operating costs, etc, etc. If they farm out manufacturing, that adds additional costs for quality control, transport, carrying costs, loss/damage, etc.
Personally, I am proud of the fact that we design and manufacture everything we sell right here in Vancouver, Canada. I'm a small manufacturer, granted, but I value the fact that I can make a great product here in North America and keep costs and selling prices competitive to those from overseas. I control the quality of the product from design to production, and sell on the fact that our products are made in Canada.