Bone
I took a look at the Don Grosh guitar website. There's a very nice looking flame top jazz bass shown. No prices or inventory listed yet. Are they going to be nitrocellulose finished like the guitars? Also the guitar prices all MSRP well above $2000 (many above $3000), what kind of MSRP would that jazz bass run?
I wouldn't look to compare the RW basses to a Custom Shop instrument except for the extra work and care put in compared to other MIM bases of the same type (50's non RW selling for $839.99
http://bass-guitars.musiciansfriend.com/product/Fender-50s-Precision-Bass?sku=511318 ) $1299 is not outragiously higher. Would I like the price to be lower (yes, but who besides FMIC wouldn't?)
There is no comparing the Fender RW to Don Grosh customs for features, etc, but the price difference for what will come out of Don Grosh's shop is going to be huge. $800 to $2000 difference maybe? What are you expecting from a mass produced instrument for $1299? Hopefully you don't expect them to be at the same level as your Custom Shop instruments. If FMIC were able to do that, Don Grosh and many other Custom Shops would go under pretty quick.
Lastly, $1299 is not what it was 10 years ago (or even 5 years ago). I remember when that would pay for 3 months rent in a decent apartment depending where you lived. Now, $1299 might not get you one month's rent.

I don't think Fender is prices are totally out of line for what they sell. Again, lower prices are always nice though.