Yes, when they were being commercially manufactured for many users.
Now that 707s are no longer in service outside the military, they're not running production lines for parts except when needed; that $200k includes all the paperwork to win the contract, the lawyers who review it, un-mothballing whatever tooling they use, etc.; the fixed costs far outweigh the costs to make each individual trash can. For similar reasons, I can buy a part for my Corolla much cheaper than I can for a Model T.
Apparently you could buy one for $300 though. I own a bin that isn't far off that price, and I'm sure many people on the site have much fancier ones.