This is nothing new, as printers have taken the 'razors and blades' approach to marketing. I happen to own a Epson Stylus CX4200 (which is a few years old), has
drivers for XP/2003/Vista/Win 7 (I use the scanner more than the printer). I recently installed refilled cartridges from Cartridge World (cost me $35.44 for 4 cartridges), and since I have the printer set for 'black ink only' and use draft printing (I can always change it), it works pretty well (prints fine, no smearing/lines, etc).
Wal-mart wanted between $62-68 for new ink (the cartridges hold a whopping 17ml of ink) whereas most cartridges today hold 10ml (or less). Given a choice, I'll save 40-50% on refills, than on brand new ink, thank you... :P