I don't think they are in that much trouble. They are just making a boatload of money while they can get away with it. But they are working on multiple tiers: free, starter, and "OMG, Money"! That last one might not be around for much longer.
If you look at their other offerings some of it is reasonable (VMWare Fusion) and others are set at whatever the market will bear (VMWare Workstation, vsphere Enterprise).
If you look at their other offerings some of it is reasonable (VMWare Fusion) and others are set at whatever the market will bear (VMWare Workstation, vsphere Enterprise).