Only Apple can properly replace these screens and pair the parts (FaceId etc), so setting the standard repair cost high enough helps push people toward Apple Care eligible new devices, handicapping the second hand market.
That has been the case basically since Apple Care existed IMHO.
> Only Apple can properly replace these screens and pair the parts
Not true. Apple has a self-service repair program for most of its products, including the iPad mini.
All the repair manuals are available online and you can buy official Apple parts. [1] They'll even sell or rent the tools you will need.
[1]: https://selfservicerepair.com/en-US/home
You're right, the self-service repair program exists. It doesn't clear neither the pairing issue nor parent's hurdles though, as Apple parts are still required , you can't get any similar enough screen you'd want, and they'll be priced the same as in Apple Stores.
As far as I remember, the self-repair kits only make sense in very niche cases (I think repair shop get a different contract ?) and won't work around any limitations Apple puts on parts or repairs.
I did not call Apple, this was a local "fix my iPad" shop.
It was funny, the guy was narrating as he is searching saying "Whoa, this is the most I've ever seen... Wow, oh man... Hold on..."
I knew it was not going to be good.
I asked if there were any DIY options for me.
He said I could possibly find a used iPad online and swap that screen. But, given the insane prices of the replacement screen, I assume the secondary market for a salvageable iPad that works is really tough.
At this point it makes sense to just buy another used iPad.
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