From a manufacturing point-of-view, this thing is dirt-cheap to make.
That little 8-bit microcontroller costs about $3. You buy a Wiikey from
your competition, and copy his code. That little tiny PCB (printed circuit
board) is about 50 cents. Throw in the the flashing of the micro, and cost
to assemble the thing, it costs $5 tops to make this item, probably closer to $4.
No doubt they are assembled in China.
It costs a lot more to make an all-in-one remote, and I can buy those at the
dollar store now.
No one is losing any money at $11.