This was a strategic move by Apple. You don't like the 5C? Then you're not their target market. Go buy the 5S or a 5 on clearance and call it a day.
1. Profit margin. Cheaper to produce than an iPhone 5, but selling for the same price an iPhone 5 would have been if they kept it in the lineup. Brilliant.
2. Forcing more sales of the high end model. I'm sure with the 4/4S, there were droves of customers that looked at both, and went with the 4. It looks the same. They don't care about specs, didn't care about Siri, so they went with the cheaper option because to them it's the same thing. Apple loses. The 5C eliminates that scenario. $100 difference for a much more premium quality device that doesn't look like a toy? Uh, yeah...no brainer. I'll take the 5S please. Apple wins. Even if they pick the 5C, Apple still wins (see #1).
3. Teens/tweens/hipsters/whatever. Complaining because the 5C colors are not professional looking and you wouldn't be caught dead with one? Well it's not for you. Business people, adults, professionals, what have you...they already have an iPhone. They have money. They're going to get the top of the line model because they know the extra $100 up front is peanuts in the long run. Young people getting their first phone or first smartphone are the target for the 5C. Middle school kids. High school kids. Trendy college students. Maybe a handful of hip/trendy people in their late 20s and early 30s. Parents will be buying them for their children. People that follow tech blogs and are interested in the specs of the phone are definitely NOT the target market. At all. Remember that we are only a very, very small subset of the consumer market.
The 5C was never meant to be a budget iPhone. The full retail price doesn't matter to people that are looking for midrange or low end smartphones anyway, so stop balking about it. If you're bitching about the price, it's not for you. Just buy the 5S and be done with it. People that shop for a midrange or low end smartphone only care about the subsidized price, and Apple has been playing that market with the $0 and $99 on contract models very well. There's no need to create a whole new, dedicated "cheap" model. Apple doesn't do cheap.