Yes, it might be a bit overpriced... But people screaming that they could run the site for $1.99 and a stick of chewing gum are way off base as well. It's like the people in companies who say, "I need more disk space! Why does it cost so much here when I can go to Best Buy and get a drive for $100!" There's a LOT more to it, and the list of technical requirements bears that out. 24x7 support (meaning 24x7 support contracts, which are NOT cheap), an IDS system, backup systems, load balancers, security scanning, monitoring, SAN, redundancy, etc, etc. It all does add up. And the company needs to make a profit as well -- you want them to do all this work and take on this risk for a $50/year profit? Not likely.
Be upset about the redactions, but the cost isn't completely out of the ballpark for a project like this... Well, at least from what I can tell through all of the black pages.