For another 100 bucks you can get an entry level DJI drone that blows this thing out of the water in terms of camera quality, range, features. This is a piece of trash.
Also at this price point $100 is meaningful. Many people go for whatever is cheapest.
Think about how people buy chocolate. Sure, for $4 you can get a good chocolate bar that's quality, sources sustainable goods, is fair trade, etc. But you can also get a chocolate bar that tastes decent for $1-$2. The "good chocolate bar" is only $2 more, but people are just looking for some chocolate.
not to mention, the pixy flies itself and controls itself which removes effort + a learning curve and that has value.