I agree, except for the fact that I think it's more about HN having no use for some premium goods and services and saying "I could think of some cool side-projects to use this in if it cost $10/mo" rather than "I have no use for this, but I think it is reasonably priced for its target market".
All things considered, $99/mo is nothing for a business that wants to make money out of its infrastructure. The way HN approaches DotCloud is "man, I could use this for my side-projects if it weren't so business-oriented". Most people here just aren't its target market.