Why on earth would anyone be surprised that this market exists? I can understand being surprised that it's possible to deliver those items at the stated price, but the market's always been there.
If you're in construction then you need a quality drill that will carry you from one job to the next reliably. If you're just trying to do a one-off drywall repair in your house that you hope never to need to do again, maybe the $10 drill is precisely what you'd buy, if you could find it.