I think you're looking at the pricing for Businesses and Organizations (the prices displayed by default). Those are floating licenses. Most individual developers would buy an individual license. Individual licenses for the All Products Pack start at $249 for the first year, $199 for the second year, and then $149 for the third year onward.

Individual licenses can be used for commercial purposes just like a business license. AFAICT, the only difference is that a business license can be used by any single developer within an organization at a time, while the individual license can only be used by the named licensee.

There's also a 25% discount for new/recent graduates, which eases the sticker shock a little bit for new graduates.