My current PC was 300 dollars at fry's electronics.
Exactly.. In fact, we get the Fry's ad here every week for fun in the office. Yes, we buy a newpaper just for the Fry's ad. :roflmao::rtfm:

And the prices on those machines (and not just from Fry's) are insane.
Now, it's not top of the line stuff. It's not a "gaming rig" or anything like that.
But the average person (well, the average person that asks me for advice) is looking for a machine that will browse the Internet and run MS Office acceptably, not play Crysis at 300 frames per second.
True, someone who wants to spend the time an effort can put together a great machine for less money than Dell or HP charges. But it's not the same now as it was in the 90's.
Back then, it was much easier for anyone to save a lot building their own. The margin's are thinner now.
desiv