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Why don't people realize that 'high software profit margins' are fugazi?

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Is "should" just a normative statement? Who decides what's fair and modest? Are you in a better decision to decide than the person who wants to purchase the software? Software needs to be cheap enough that the purchaser's are getting marginal value from it and the margin's must be low enough to keep a barrier to other entrants (your margin is my opportunity).

I think you have a moral sense that the cost of software is unfair, and I don't really know what to say about that. I'm not going to tell you that you don't or can't feel that way. But, you asked for some explanations for the cost of software and I provided some considerations as to why the current pricings are stable.