And when you really think about it, paying any price for a digital download is simply price gouging anyway, since the cost of reproduction is zero. That means at $5, Trism is marked up 500 times. No wonder he got so rich, huh?
You seem to have a moral objection against high mark up percentages. Your first error is discussing margins in terms of percentages of costs. The only case where this is meaningful is when there is a risk involved with the cost. Since you disregard development costs, marketing costs and write-off costs, the remaining cost (distribution + "replication") carries no risk.
The markup percentage has nothing to do with how "rich" you get. Your profit comes from absolute margin times volumes sold. An acquaintance of mine runs a business with a "mark up" of < 5 % and they are still able to make loads of money. Are they saintly in your eyes?