I can't tell the price in the US, but here in Aus, Photoshop is $1168. That's around the price of a reasonable SLR body (and 3 times the price of entry level SLRs), so it's a bit over-the-top to characterise it as 'measly'. The only context this price being 'measly' belongs in is 'professional'.
edit: found US price is $699 (before tax, Aus is post-tax). That's still not 'measly' in any context other than professional.
The general idea is that before becoming a professional you're a student, and get a very significant student discount.
Of course, this essentially puts one more barrier for people who can't afford formal studies. And especially with the DRM becoming more and more effective, I've actually seen this being a significant obstacle for designers-in-spe from e.g. Poland (where even the discounted price is quite a lot of money). They deal with it, one way or another, but it's always a huge strain.
As for the established professionals for whom the price isn't terrible -- well, good for you, pat yourself on the back for being rich. Less competition that way, or something.
edit: found US price is $699 (before tax, Aus is post-tax). That's still not 'measly' in any context other than professional.