only in a "free-"market. Also there is a concept of "fair price" for a reason. You can't charge insane prices everywhere, especially for essential items.
It might be, if making music is the only real way you have to make money. Of course, in that case I would hope that you would use your proceeds to pay the service pretty quickly.
Sure, I agree. Not all markets meet the concept of 'free'. But distrokid is competing in a market that is pretty close (helping musicians distribute music to services).