While I agree that it is expensive and I wouldn't buy it at that price. I don't think the price of many garments we buy is directly correlated to the labor + materials that go into them. That and I don't know if there is a special technique to do it, but I can't imagine knitting a skull pattern is easy lol.
Its like those Tom Ford jeans arguement. No they aren't directly worth $990 dollars, but people will buy them at that price