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When you buy the TLD, you're not just reserving it for your own use -- you're signing up to operate a registry which will allow anyone else to purchase domains under your TLD. ICANN wants verification that you have sufficient funds to run a registry, for one thing.

They're also a non-profit organization, and they seek the fees to support all the copyright arbitration and legal wrangling that will eventually ensue over the new TLDs.

If the price was low TLD squatting might be a concern.

The application fee is to pay for the team of lawyers that read the application, and to discourage frivolous applications.