[wallabe]

It's no more ridiculous than a normal gift card: "Wait, you paid $25 so I can have $25 that can only be spent in one location?"

That's a cost right there...if flexibility had a price I'd bet it'd be >5%.

[DanielStraight]

No more ridiculous than a normal gift for that matter. Giving a purchased gift at all is trading $25 for an inflexible $25.