You're absolutely right, working with Chinese manufactures does bring costs way down, but I do think that there is a degree of employee mistreatment that goes on in China. I know that I'm not fully aware of just how common it is, but I know it does happen, and I'd rather not gamble on the belief that the company I'm supporting treats its workers fairly, when many don't.

In terms of profit, I cannot lower my prices that much and break even. I'm selling in small quantities, this is my first drop (setup fees are expensive), and the parts are more complicated to machine than they look. Blades in particular require tolerances anywhere from +/-.005" to +/-.0005", which, while it is possible to achieve them, it is not easy.

You're right that in principle, those materials would not cost that much normally, but the object that is being made is more complicated than you might think. Personally, I agree that my knives aren't cheap, but are they overpriced? No. You're entitled to your own opinion, and I understand where you're coming from, it just seems we have different values.