Corrective upvote since you answered half the question. XD But yeah, I wonder if Bose's consumer-level reputation of having no competitors that are both better and cheaper is deserved. Hopefully Eikenberry can answer that.
I've never liked the Bose sound, but I recognize that they do some things well; those just aren't the things I care about the most. I wouldn't say they're overpriced, though -- it's hard to argue that when their products sell so well. Maybe some of the others are underpriced ;-}
The PSB is nicely designed, too -- for instance, the cord unplugs at both ends, and can be plugged into either side of the headphone.