I think they are just highly processed cuts. The package even states 30% water/additives. For a 3.5oz package, I imagine your getting around 1oz red meat after subtracting the fatty bits. $1/oz is about right for most cuts. I think it's more of a marketing scheme rather than fraken-meat.
Remember the three quarters of a pound footlong hotdogs that Westward Ho used to sell for .99 cents? I would have loved to have seen a test result on those babies.