They have lots of Manhattan locations. This one is in the heart of midtown Manhattan, in the business/shopping district. The people who live there are mostly paying an absolute fortune in rent or mortgage for the convenience of living extremely close to work, and are probably working very high-powered jobs and value their time highly. There's also very little in the way of grocery stores there. I know one person who lives about a 3-min walk from this Whole Foods (in a small $4000/mo apartment) and his food habits are that if he has someone to eat with he'll go to a restaurant, if he doesn't he'll get take-out, and he pays to have all his groceries delivered. (What little groceries there are.) He used to complain that there were no grocery stores in that neighborhood at all, now I guess he has no excuses... :-)
I'm sure there are a lot of people in that neighborhood who will use any time-saver like this, especially if it lets them eat healthier.
Not saying it isn't silly for most folks, but it makes sense for WF to offer it.