This is all correct. Walmart by me has row after row of BSOs for $79 to $99.
The local bike dealer starts road bikes at around $999 and goes up to maybe $10,000, with most sales in the $1,400 to $3,000 range.
Really no comparison in the products. I pedal hard enough I suspect I could break the crank off a BSO in a week. Keep meaning to buy one and write a blog about it or something..