It's not about my personal spending limits. I didn't suggest a price. It's about using a reasonable pricing scale for what you are selling.
This site doesn't represent the entire audience of the game but it serves as an example that one could base a market projection on. That is what EA bases their decisions on - example tests.
Also, what he was getting at wasn't exactly a cherry-picked instance. It's common practice in business. You find an ideal price point that will make the market thrive, or you produce a better product for what you are charging.
Will people pay these prices? Sure. Some people will also pay $700 or more for Louboutin shoes. The difference is one caters specifically to a wealthy share of the market whereas the other is aiming for the casual consumer. Not too many people here feel the prices are justified, even the ones who do pay for it because the want it and get enjoyment from the game. I'm going off of the general consensus of the majority, not my own opinion which happens to align.