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Not really, developers don't sit on chairs made of money. But they shouldn't price them the absurd prices they put(Photoshop for $700?! Vista Ultimate for $400?! No thanks!) Reasonable price would be from 50 to 100 for an OS.
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Reasonable prices in capitalist countries are set by the market. If people did not want to buy them, then the prices would come down. If people voted with their wallets and bought another competing product, then the prices could not hold. Of course, try to get a computer installed without Windows is not easy, and most people will take whatever comes with it.
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What I want to know though, is how can an open-source software be sold? Does the source come when you buy it?
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Open-source software (software libre) mean that the source code is included and you can change the program however you want. The source code may not necessarily be included with the software in a package, but it should be readily available on a website.