Value is an abstract concept. My ecigs are ALL worth what I paid for them. (I'm NOT smoking.)
Price, on the other hand, is just a market construct. Things cost what people will pay for them.
If people will pay enough to justify what goes into making them, then things are sold.
If people are not willing to pay the asking price, either the price lowers (if it was unnaturally high), lower cost producers replace higher cost producers, or the product doesn't sell and disappears.
We've seen this a little in the few years ecigs have been on the market. Some products have had dramatic price drops. Others vanish. And most products cost more when they first appear (and have novelty value), and get cheaper later on. (So do Apple products, or anything else.)
The things about mods, though- they cost what people are willing to pay, if someone can/wants to produce them for that cost. I sure wouldn't mind if they got cheaper. But there are reasons they cost what they do.
Another poster mentioned volume- mostly, we're dealing with products that sell thousands of units a year, if that. Some are hand made individual units, and sell dozens or perhaps a couple of hundred. When you compare them to children's toys, flashlights, or Chinese-made telescopes, you're comparing to products that sell millions of units a year. High volume allows lower profit margins, lower volume tends to require and support higher margins.
But also- I haven't had a Little Sister, so I can't talk about those. But good mods are a LOT different than flashlights or children's toys. Unlike every toy I played with as a kid, these are high drain, high voltage devices, and voltage (therefore conductivity) matters. Good mods are made to deliver, as nearly as possible, the full voltage of the battery to your atomizer. The need for good conductivity means using materials that children's toys don't. Also, try this: Buy a flashlight or children's toy that you think resembles a mod. Press the button or flick the switch. HOw does it feel? Quality? Usually not. Then, press the button 1000 times. Does it still work? Some will, some won't. BUt an average ecig user will press the button many thousands of times over the life of a mod. (I have an ecig with a counter, and found out that I take 200-to 500 drags a day.) Try this with your toy- it WILL fail, in weeks if you're lucky, but probably sooner. We expect our ecigs to take a LOT of use.
And, I carry mine everywhere. Drop it sometimes. Stuff it in my pocket, bang it against the table, you know.
I've had a lot of cheap and mid-range ecigs. (Cost $30 to $80, maybe.) Not a bargain if they wear out in a hurry. I've also had one riva battery explode when it gave up, which made me think again about bargain shopping.
I'm now awaiting the arrival of a fairly high end mod. (Apex Alpha Ultramax) I suppose I wish it were cheaper. Most of us would rather pay less than more. But if it works as it seems to (according to many users), I'm happy enough to pay what it costs.
Best,
Ande