Kaphix: You're saying that Blockland Retail costing $20 is crazy because GMod, a more popular game, is only $10. Well those are two different styles of games, there. It's also an opinion for you to say which game is better. None of the games is better than the other because it's just opinion. Also, Blockland Retail is actually a full game, whereas GMod is a mod.
Also, good job on finding games that cost under $20, what does that prove? Jackshit. Some game devs have different methods of pricing. Some price low to get more people, some price high to get less people, but only the people who really want the game.
And again, about your interview with three people, the first person apparently doesn't even want Blockland Retail at all. And who really cares if they want to buy it or not? I sure don't.
Marco: Blockland Retail is indeed based off of LEGO, but he has changed a lot more things than the brick textures and player models. It's also your opinion if you think Torque is good or not.
My thoughts: I believe Badspot set the price that high to only allow those who really want to play Blockland Retail to be able to get it. Some people are meh-meh, undecided, and would probably not spend $20 on a game that they somewhat like. I personally think it'd be better for Badspot to price it at $10-$15 for more users and money, but I don't know.