It costs so much because you're used to seeing things that are similarly constructed that are produced in the millions upon millions of units that cost less. Design and construction costs are obviously spread over all, so something like this probably produced in the low thousands will be much more expensive per unit. I could guess they're probably assembled by hand. But with a degree of accuracy needed for these gizmos (like the Signoscope:
https://goscf.com/t/35181), I would also guess there's a somewhat higher rejection rate of ones that won't work after assembly, too.
I've tried out this one (too). At least the ad site does give a fair list of conditions you need to make it work. Plus it can take some fiddling sometimes to get something readable. If you don't like or can't use lighter fluid/watermark fluid it's an alternative. You can wait for a used one to come up for sale though I'm sure ones rejected after a trial or two are wrapped up and offered as new.
Lastly of course, if the watermark is so weakly impressed to start with (some Brit. Comm. spiral watermarks, S. Africa triangles watermarks, etc.), no method will help you see it.