Costs are rising, but that effect is magnified when a line is very small. Playmates isn't the only line that is priced out reasonably. I feel like the Predator and Robocop figures are reasonably priced (so long as their isn't a glut of figures put out).
I understand it perfectly. They not only sell your products, they also advertise it. So, they are doing more than their share. I'm fine with Internet-only lines (if that's the way someone wants to run a line). The problem is no advertising is taking place. Of course the lines are shrinking.