It goes beyond just the price. There is the quality of the steel and the craftmanship that goes into it.
As an example, the Rivendell Bleriot, which is pretty much a clone of their saluki, is made in Taiwan instead of Japan. The metal is a different quality. The frame is tig welded instead of brazed. And of course, the labor is cheaper. It may weigh a few ounces more, the lugs are not as intricate and after that, I just go into speculation.
Here's the bottom line:
Some people think that anything over $50 at a garage sale is too much for a bike. They run it into the ground and then get another used one. For them, $400 for a Surly LHT frame is too much. Others want only the top of the line of everything and pay $7-8,000 for a carbon fiber everything. Is one of them wrong? No.
You say it's overpriced. And it is, for you. For someone else, it may be just perfect. To rephrase what I said earlier, a used 1983 Dodge Omni, a Ford Mustang and a Ferrari do the same thing, get you from point A to Point B.
There's a market for the Rivendell and their $1,400 frames just as there is for Trek and their $7,000 top of the line frame. There's a market for Surly and their $400 frames. There's a market for Walmart fully assembled bikes for $100.
I don't judge anyone for their choice in bikes, just their bicycle apparel fashion sense.