Yes, you are correct on most of your observations. They are very expensiv e and very small and very expensive.
As others have pointed out a hearing aid is a bit more than just an amplifi er. Think of it as an amplifier with an equalizer. In general as we age ( or in my case spend some time in a 5" gun magazine) out hearing deteriorate s. I was diagnosed with a very sharp notch at 4kHz. It wasn't possible at the time to correct for that with a hearing aid I was told. I was able to push up the complete band from 2kHz to 6kHz with an equalizer and it helped very much. While the notch was about 40dB down I pushed the complete band up about 10-15 dB. Now my hearing drops off at 1.5kHz. Down 20db at 4kHz and another 20dB at 8kHz. I agree with your opinion. There is little need to fit the whole contrapti on inside your ear. I think for many people, who want to hear at a fair pr ice, a unit that fits in a shirt pocket would be fine. The usual design ta kes input from your hearing test and programs the amplifier response based on that prescription. Nothing that the user coulldn't do themselves with a couple of pots.
As far as the price goes you are probably somewhere in the range. I would g uess $20-$50 might do it.
See my post around 2-26 > I dont need a hearing aid, but I know someone who needs one and told me