it's so expensive..... because they can

Each resort is on its own island and has you held captive for meals, etc. You can't just eat somewhere else so they can charge whatever they want for food (and apparently for rooms). As long as people pay ....well ....

It is really beautiful and I guess a lot of people are willing to pay since they keep building new and more expensive island/resorts.

Don't forget if you are going to the Conrad that 1 - reward rooms are hard to get even if you have the points and
2- you have to pay for the seaplane from MLE to the island about a 20 minute (VERY loud) ride around $300/pp with strict luggage wt restrictions.