This sounds like a weirdly low-trust equilibrium for a planet with truthspells and priests of Asmodeus. Keltham suspects there's possibly something here about inadequate scales and institutions, like, there's no central Magic-Item Rental Agency that can form long-term customer relationships with people who could then rent lots of separate items much more cheaply...
Dropping spellsilver costs by a factor of 10 is probably a more sensible thing to get started down its critical-path first. And maybe there's not that much magic to be unlocked, with lots of short-term non-recurring magic-item rentals. But it also sounds like the sort of thing where there's a lot of economic potential-energy pent up, wizards not making the magic items that could be rented out to many more people, more cheaply.
Well, he'll also focus on his Spellcraft, though.