From their website...
"Procerus Technologies, founded in January of 2004, develops and markets the Kestrel™ Autopilot System for mini and micro Unmanned Aerial Vehicles (UAVs and MAVs). The company’s purpose is to bring innovative and meaningful miniature UAV avionics products to market for military and emerging commercial applications.
Procerus designs small automatic pilots specifically for mini and micro tactical UAVs using leading edge miniaturization and design techniques. The Kestrel is fully integrated and is easily the most elegant autopilot design package on the market today.
Procerus autopilots are used in a variety of UAVs ranging in size from 12” and 24” back- packable UAVs to 10-foot wingspan aerial reconnaissance platforms. Procerus sells autopilot and ground control products to systems integrators and researchers within military, academic, defense industry and private research institutions. "
Their target market isn't particulary worried about how steady the video is, they're more concerned about the tactical and strategic advantage gained by having one of these and have very deep pockets to pay for systems that a moderately intelligent person can operate with a minimum of ability and training. That's where they play and why the cost is as high as it is, the target customer has the cash and will pay it for a product that performs according to their needs.
Ken