You're right - people who don't see that value won't be our customers, and I should have said "quite reasonable for the product that we provide" or similar instead.
We have made a conscious choice that we aren't going to chase after the really price sensitive customer.
We're OK with not having those customers. If price is your ONLY deciding factor, then FastMail isn't for you, because we'll never be the cheapest option. You can't compete with free if you don't have another funding source to subsidise the product.
And we don't: all our income comes from selling our service, so we can't compete on price alone. We have to compete on quality, features and execution.
I wound up moving this paragraph deep into the blog post because it wasn't the point of the post - but it is one of my key driving principles:
"Our goal is to solve your email needs as quickly as possible so you can get on with everything else in your life."
We don't want to keep our customers' eyeballs on our site longer than the minimum required to achieve their goals.