Not at all. Any reasonable person would expect the prizes you win to be all-inclusive, without hidden costs.
Americans expect to pay taxes on gifts and prizes, they are classed as earnings over there and they've grown up with it.
Why is it dumb to pay taxes on your income? Just because its televised? There is no difference between the price is right and a professional sporting event. In both, you get paid to entertain. If anything, the price is right does a better job at this since you get paid based on your performance. Wish professional sports would be the same. You take pay cuts when you don't perform well.
Because outside of America, prizes are not classed as income because a prize is not representative of your earnings and possible expenditure. If you earn money, its usually a good show of what kind of money you have anyway. If you are given something, (a.k.a a prize) it doesn't have to stack up to your earnings. If you get lucky and win a luxury car you might have been too poor to buy otherwise, you might still be able to afford to run it etc outside of the USA. Obviously outside of the USA if you win money, you'll still be taxed on it. Thats because you can afford the tax on the money, because you'd pay with the money you were given.