I heard about how they jacked up the price because of low supply (like you had mentioned, Kite). I found a copy of the game at my local gamestop, and immediately bought it. Though it frustrates me very much how it didn't come with the Liminality disk, original cover, and the game disk itself was badly scratched. "I paid $35 for THIS?" is what ran through my mind as I took it home with me. I was actually tempted to buy it for $52 on amazon if it meant obtaining it in good condition. At least I now have it, though it's condition still gets to me. I have tried looking for a site to copy off the original cover, but to no results.
Anyway I am not sure what the reason/s could be, but the ones posted here do sound valid (that digimon one though sounds strange, though. Puts "hardcore" into definition).