If you look at how much this seller marks up other limited edition issues he's selling it becomes apparent to me that the sellers cost for this particular chip was obviously more than $1. I don't expect him to disclose to me what his cost was, since his markup is none of my business.
It comes back to the supply & demand question. If the price is too high for me I'll pass for now and see if it becomes available later at a lower price. If it doesn't then it just joins the thousands of other chips that I'm destined to never own.

The fact that every chip collector can't afford to own every chip is never going to ruin our hobby. In fact, it's one of the things that actually drives it: the desire to add to our collection what we don't already have.