My monthly satellite bill is $60
OK, I haven't paid for satellite or cable in a while. It is still MUCH cheaper for something that does a HELL of a lot more than shows commercials all day. As a quick example: XP was around for 7 years. $300 / 7 / 12 = $3.5/month
What makes it so is that the entirety of my computer costs about that much pre-software
Right, but what is your computer without software? A pile of chips.
there are plenty of solutions out there that do what Windows does for free
Cool, use them. That is your choice. Some people choose to use software that costs money. Gimp vs. Photoshop, Word vs. OO.
which is about all that the product is worth
Sorry, see Econ 101: Valuation