I cannot speak for the selling side, but I can speak for the consuming side.
There are three things that drive the price; supply, demand and location.
While the price may sound high, considering legal kegs are not easy to find in my location, the price is fair. I may be able to drive to pick this up, saving shipping cost.
The fact that a plain keg with no fittings or cut out top,do not come up for sale very often and then you need to have it shipped or go get it. When they do they are in the $75 range. Sabco has a keg with similar features for $280, now it does have a very nice outside finish, it is not worth the price in my opinion, I can polish it my self.