Having experienced first hand what the OP is describing, I agree it's closer to extortion than anything else. Especially when you end up in situations where the iTunes account is so old/unused that you need to use the security question as 2-factor auth. Since you don't know the security questions, you are locked out of the account, and can't even change the credit card on file.
In my case, it took over an hour to resolve over the phone with Apple, so that my dads account was unblocked, so that a free app that I downloaded on my account from the app store, on his iMac, would update.