There are at least three problems with your interpretation. First, the binary form of the software appears to not include any offer to provide source code, so the $3.99 cost for a binary copy is not easily interpreted as the cost to provide a copy of the source code. Second, the language of the GPL specifically limits the cost to the "cost of physically performing source distribution"; the inclusion of the qualifier "physically" arguably excludes imputed labor costs. Third, to the extent that the language is ambiguous, US courts are supposed to interpret ambiguous clauses in standard form contracts against the party offering the contract, and there is room to view the distributor either as the party who accepted the GPL or the party who offered it (to the end user).