Nah, only around $20-30 overpriced. Considering the 3870 is supposed to be around $230 and the normal 3850 around $180, this one has double the memory of the $180 card and is overclocked to between the two, and has a dual slot cooler like the more expensive card...
Or, are you comparing that to superior performance Nvidia cards that people can't buy at prices that they don't sell for?