well just consider that you won't be playing on an arcade stick (with arcade parts that is) if you dont' dish out some cash. the breakdown for the $200 is an extremely fair price.
here's the breakdown of the parts alone, if you were to build it yourself.
wired x1 controller (wireless + plug/charge kit) - $75
jlf joystick - $30
buttons - $60
that right there, not even including the case, which those can cost you well over $100 for the case alone for a nice joystick, and we're talking $165. and that isn't including the LED lights and r&d, as well as accessibility, and the labor of getting it all working.
of course, if you already have a joystick you can gut, and know how to wire stuff, then you're looking at like $85 or so for the controller + wire/parts.
i've debated just wiring up my current joystick to work on x1 and keep the ps3/360 stuff wired up, and just having 2 wires coming out of it, 1 for x1, and 1 for ps3/360, and i might eventually do that, but i am a ki nut so that's another reason i am getting the te2.
peer pressure ... peer pressure...