Also the low cost TLDs on namecheap are such a scam, especially the .host TLD. They are like $1 for first year and 20x or even 100x for the 2nd year onwards. So it's best to check the cost for 5 years before you fall for the $1 trap.

BTW as to your point I totally agree that it should be much cheaper than this. Namecheap at one time had a promotion where they allowed you to register for 10 years for $10 or something. So it's definitely doable and most probably as soft limit by the registrars.