Like all SIM cards, the eSIM.me has what is functionally a tiny computer of its own inside it, but the implementation here differs from your typical card. It has all the necessary hardware and software to run its own eSIM, meeting all the same specifications and delivering all the same functionality through software, capable of storing multiple different network profiles. So partly, some of the cost is this hardware device produced in low volumes.
It is interesting that although the iPhone won't be able to change profiles, it could use one of these eSIMS if they are already set up. Also, the costing is expensive for additional profiles, but it appears if you have a rooted Android phone, there's an open-source eSIM management app that you'd be able to use without touching eSIM.me's app.
Of course, a normal carrier SIM card is very cheap, so one would really need to have a suitable use case for this eSIM card. That said if you regularly struggle to change SIM cards (eg. lost SIM ejector tool) maybe it could be worthwhile, if you have a suitable phone, and a carrier supporting eSIMs.
See
This eSIM is ready for your phone, even if your phone isn't ready for eSIMs#
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mobile But the "e" this time stands for "expensive" — the full version costs $70