This is exactly it. The actual landed cost is 1/10th of the sales price, and most of the rest of the margin pads the marketing and exclusivity machine. If for instance LV starts selling their $200-landed Neverfull bags at $500 or even $1,000, all the infrastructure sustaining the image becomes unsustainable.
My personal opinion is that the business model of selling status items - specifically those which only have status because of an artificially limited supply they control - is inherently predatory and should be restricted. Not because I'm the morality police and want to stop people from buying a bag that says "I spent $2000 on a bag", but because there is nothing that stops the company from cost-reducing that to oblivion. If you are going to sell a $2,000 bag, it should be marketed on quality, not a cult.
Clothing has been used as wealth/class indicator for thousands of years, trying to change that will be extremely difficult lift.