Apparently the world's best restaurant, El Bulli, is closing because it loses money.
If the amount people pay doesn't exceed your costs, your business is by definition a failure. You however may not be a failure; better to try an idea and fail than not to try at all. But if you've got a massive waiting list and you're too stupid to raise your prices, then you are a failure.
Yet we are supposed to get all excited about places like this, to lust after going there. Personally there's a thousand other things I'd rather do with the time and energy it would take to pursue this or many other over-subscribed events and locations. They may not provide the same bragging rights, but the choice between living your life for your own enjoyment vs. impressing other people seems a no brainer to me.