Classic example of pricing based on value to the end-user (in this case, a pretty nice fuel savings) and not on actual cost of materials. Something to keep in mind as a developer when selling your skills, software, etc...
Not so sure...consider how much is cost to engineer (probably at least a few millions + all the testing/certification costs) spread out over less than 10k units.
So where is the competition?
Where is the regulatory certification so that it can be allowed on an airplane?