I think part of the problem with LBT is that it's a US firm and in the US, if I have it right, they cannot retail military kit for less than what they sell it to the DOD. Hence, they over-price everything as that's how much money they want to try and achieve, minimum, on their DOD sales.
Yes, the $2000 toilet seat problem.
I cannot remember what the legislation is called but you are right. I can show you a rucksack for $120 that was made overseas and the same style rucksack for over $500 because it was made in the US to be compliant for sale to the US military (Kelty Redwing, not bad actually, the cheap one, not the expensive one).
As an FYI regarding rucksacks: Mystery Ranch is popular with the big children in't US. Level Peaks I believe are the UK rep if you can hit them up for a review - solid, well made gear, designed by people who understand rucksacks frome before the time people started throwing together bags with shoulder straps and molle.