2 million is the minimum recommended to protect my ass if I get hit by someone either underinsured, not insured at all or drunk. Apparently when someone drives drunk it voids their insurance, and my liability will cover that if they hit me. And with the new tougher drunk driving laws, I know of quite a few people who get their licenses taken away but keep driving, which then also means they're no longer covered by insurance. Also, with some of the crazy settlements and judgements in lawsuits, I'd rather be overcovered than undercovered.
But I agree, we definitely overpay here. When I had my '06 Focus I think I was paying $180 per month, again that was with the same deductibles plus replacement insurance, and I think only 1 million liability at the time. But thats government insurance for ya, I almost think I would prefer private and then there would be some competition. Pretty much the main reason I didn't get a new F150 like I wanted, I could afford the truck but the insurance was over $300/month. Not something I could fit in the budget with a mortgage payment, maybe if I was still renting.

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2008 XLT 4.0 auto ext cab 4x4
Levelled, 265/75/16 ProComp Xtreme AT on ProComp wheels, dual exhaust, more to come