Yes, yes it is. We are certainly not making these things to become rich but moreover to ensure good tools are available for more rigorous engineering and product testing. I have found many students will simply avoid thorough testing if it is "too hard". A device like this helps make qualification of USB current draw under different firmware modes of operation much simpler and it is fascinating to watch in real-time across voltage and current simultaneously.
We use a RECOM isolated SMD DC/DC in conjunction with an SiLabs capacitive barrier data transceiver for isolation, both of which have 2.5kV barrier breakdown voltages if my memory serves me correctly. This separate data and power isolation configuration actually helps us keep the cost of implementing full isolation lower than an integrated data/power isolation solution but still adds a fair bit to the total cost of these devices to make.
The display we use has an MOQ of 2240 pcs for reasonable pricing and is by far the most expensive component (check LS013B4DN04 on Mouser). The BOM has 149 components for the USB model not including housings so when you consider the number of parts on an Arduino Mega is less than half this, building these things is an interesting exercise with dubious profitability. We are most definitely subsidizing the build for the early backers but there are limits to what we can afford, hence the cap. Also, the AU dollar is in the crapper (technically speaking) which makes things even more challenging for manufacturers here.
Having said this, lean manufacturing may be easier in Australia to some extent. Our level of general knowledge often means it takes less engineers to get the same job done. For instance, I ended up building the website, building all of the KS content, designing the plastics, designing the PCB, designing the overlays, on top of designing the system architecture. Luckly, I didn't have to write all of the code for the firmware and desktop software (though I did make some groovy icons and installers). This kind of thing is what makes it happen in Australia sometimes I believe.