That's the list price. You don't pay the list price if you purchase at high volume. Bare metal and VPS providers are surely very high volume customers.

This is perhaps an argument against pure DIY colo, but most small scale colo isn't connected "naked" to the Internet but gets racked in a data center that offers a bandwidth package and does peering for you. The only people who peer directly tend to be clouds, bare metal hosts, CDNs, and ISPs. Even if you have your own IP space and an ASN you are usually behind someone who is bulk purchasing transit and handling peering.

To be fair very large customers can negotiate costs down at cloud providers too, but you have to be spending tens of thousands a month to even have a chance at getting their attention for any kind of special deal.