You're only looking at your own perspective. Remember... VC has to look at it from their perspective.
Not that the pricing matters... Normal people won't be able to get one. And those who do get one would've paid more if they had to. But comparing the watch to the Chopard Alpine Eagle XPS - a watch in the similar Geneva Seal level and the case is also fairly complex to make. The Chopard is $24,300 USD. The Patek Philippe Cubitus is $41,240. Vacheron Constantin could've charged anything in this range and I would've said it was within reason considering the competitive landscape.
If you're arguing the pricing of all watches is too steep, then I'd agree with you there! But then thousands of people who buy these things every year would disagree with us by voting against us with their pocketbooks.
The 37mm sounds small to me too. Although it does wear slightly larger than the 37mm size suggests.