First, if you are going to law school, the ROI of a better LSAT score is astounding. Likely $200000 in scholarships and then who knows how much in future earnings. That is what justifies the high fees.
But second, the market for LSAT tutors has actually shrunk dramatically. It's been cannibalized by an explosion in free/affordable online resources that are as good or better than a tutor.
I know johnathan, the tutor in the article. He has his own platform that generates clients. It's very, very hard to be an LSAT tutor now if you don't have that. Only the visible minority can consistently charge $100+ an hour ar enough volume to do it full time.
For anyone curious about these online resources, the main company in the field is 7sage. They've done the most to destroy demand for tutoring (this is a good thing!). They have free explanations for the logic games section. This used to be what everyone asked tutors about. Now almost no one wants logic games help.
While I do tutoring, I mostly focus on products and on creating free/inexpensive resources. This is my own contribution to eliminating the need for people like me: http://lsathacks.com/explanations/
(They're free explanations for a bunch of LSAT practice tests.)
I think society is better off for having free/inexpensive products addressing this need, rather than many expensive tutors.
The top half of the class is still doing okay.
Of course, everyone thinks they are in the top half.
The lack of a long run clientele reduces volume, and makes people only willing to tutor if they can get higher rates.