I can't tell you about other programs.

The Desktop version of Turbotax, if you buy the Deluxe + State box, includes federal preparation and one state preparation module.  State e-filing is an extra $25 but you can skip that if you print and file by mail.  Extra state prep modules are $40 each, but with those extra state modules, e-filing is included.  You can prepare as many returns as you want for family and friends as long as you are not acting like a paid preparer, and you can e-file the first 5 (IRS limit).

If Turbotax is priced higher than competitors, then either they think they have a premium product that is worth more, or TaxCut is trying to undercut Turbotax to improve their market share.

You should use whatever program suits your tax needs and price preference.  Presumably, if millions of customers desert Turbotax for cheaper alternative, Turbotax might change their pricing strategy next year.