Thanks for your reply! I know the prices are high when compared to registering a domain in the shell with the namecoin software. I charge for making the process simple, web-based and automatically keeping your domains from expiring. All transfers of coins and domains in and out of dotbit.me is also free even though transfers out costs me coins. The service is not for everyone but a lot of people seems to enjoy it.
It's a hobby site but the goal is to sometime in the future break even. Prices in crypto-coin are very volatile so what was a low price yesterday can be high today and the other way around. I have lowered prices a lot lately but do not intend to increase prices when values fall which means I need to be careful.
Regards,
Tagide
dotbit.me