Yeah I don't understand the pricing, either. I don't want to pay such crazy prices for knockoffs myself, either. I got the gens I always wanted.
But of course when the quality got so much better I'm sure the production costs increased too. Something like the TC Submariner and the Noob Daytona (or whatever it was called) were light years better than the stuff that we had back in the day. Remember "TW Best Sub"? It was awful and full of flaws by today's standards but we still were happy with it and we considered it to be a "good rep". Or the MBW Red Sub. The dial and case were pure crap to be honest... but moddable, yes.
But on the other hand the gen Rolex prices have skyrocketed too. 1675 was a 4000-5000$ watch 10 years ago. Now it's a $14000 watch. I don't want to pay such prices for the gens, either. I could pay maybe €700 for a great franken 1675/16750 but my limit is there.
$600 for a bulk Omega rep makes no sense. You can buy vintage gen Omegas for less.
Cheers.