I don't see why my analogy is any more ridiculous than yours. Windows 7 Home is more-or-less an artificially limited version of Windows 7 Pro. You can pay money and "unlock" the Pro features. I'm OK with that. Even though I'm unlocking bits that were already on my hard drive, there's no scandal here.

If we both agree you can charge whatever you want and price differences don't have to relate to actual costs then what's the problem?

You are upset solely that they called it an "installation fee" rather than an "upgrade fee"? I see your point... but like I said, hardly the crime of the century.