Well from our point of view its unreasonable no doubt
but try looking from their commercial point of view, in the good old film days without digital cameras/DSLR or compacts, no DI, they made a good living from $6 for 4 passport pics, developing our negatives etc.. nowadays with digital, folks print less often, competition has risen so some offering 4R prints at like 18cents each, professionals having other options like their own printer etc.. They are really pretty desperate safeguarding their rice bowl. I wouldnt want to reach a stage that photolab become rare, because when that happens, price will start going up again.
BTW i also print 8 passport pics at 50cents