It really depends on what the cost to Apple is. I think it is fair for them to make a healthy profit, but the current prices are a cash grab and, to me, seriously damage the image of the company.
In my opinion they shouldn't have offered the gold. I think they would have been better to offer the aluminum as the

Watch, and the stainless steel with a charge stand/box as the

Watch Edition. This would have been a lot more reasonable. To me the current Edition just takes the conversation to price, and the potential of the watch gets pushed to the background. In the mainstream, the Edition has garnered the lion's share of the headlines even though it will probably amount to less than 1% of sales. On the other end, attaching the sport moniker is a disservice. There is nothing sport about it. It is like the Carolla S. A fine car, but the S is just some body cladding.