This is not at all exorbitant. Less than $1 per hour for many regular social media users
Paying $1 per hour solely to remove ads is pretty high. Netflix, Hulu, et al are offering content they created for about $1 per hour. A lot of video games are less than $1 per hour to get content to enjoy.
It's not that the absolute price is too high, it's that the goods being offered are terrible and not worth more than a nominal price.
Streaming subscriptions is a great comparison point. For many people, Facebook and Instagram together occupy a bigger role in their lives than Netflix does. This subscription cost is less than Netflix"s