I think Adafruit is pushing the limit of reasonable. The price of their products isn't terrible, but with the prices they charge I'd expect a free shipping option or something similar. Their prices are basically in line with what I would expect a retail store to charge. A mail-order warehouse has a much lower overhead per unit than a retail store. They do not need to be as well lit, the fixtures are cheaper over their lifetime, they turn over inventory much faster, products take up less space, etc.

I suspect their high prices are dictated by their New York, NY location. The location may help attract talent, but it doesn't make sense to locating the warehouse for a mail-order business in the most expensive city in the United States.

I don't want to suggest they shouldn't be located in NYC. That is their prerogative. I think the "Adafruit is way too expensive" argument is valid. They are insanely expensive, and while their documentation is fairly good, they are other companies that provide similar value at a price that is much lower than adafruit.