Call it whatever you like to. Unfair or taking hostage or whatever.
Camera of this range are generally used and throw. Which means it is gnerally more difficult to repair. Repair cost can be high. Secondly part like LCD are normally proprietary parts which are controlled by the manufacturer. This means that manufacturer also pays a higher price for this items than commonly available parts. This means that it is almost impossible to get a replacement part outside of Nikon.
$200 may appear steep but I will not expect anything less than $100. Perhaps you can talk to Nikon service center and explain the rationale and only they can help.