I have real trouble seeing that as saddening.
It isn't as if anyone is going around making the the free version arbitrarily defective. The reseller is putting in work to add value and getting paid a buck for it (literally).
It would perhaps be upsetting, too, if they were going after folks somehow. But I don't see this in the rendition above.
(In reality, a buyer would probably be fine if they took the Project Gutenberg version, bought the reseller's digitally reformatted one, extracted the TOC data and error corrections, and then slapped that onto the free version and sent it back upstream to Project Gutenberg or someone else who is distributing free copies. They would be legally in the clear, so the reseller, then, stands to make as little as $1 for their investment in that work, so in that case it seems imminently fairly priced.)