Couldn't this be fixed by adding on the reduced value item property?
We don't do that as that would just skew balance of items. Item value is based on the item's properties; that's how we balance them against each other objectively.
When I was making the item, the intent I had was to replicate something similar to the items that gives Camouflage and Light Step. Both cast it at a higher level to make the items worthwhile and last for a significant amount of time to be considered as useful consumables. The Light Step variant also is a higher level spell, level two innate, but a version is capable of being found quite readily.
Perhaps there is something skewing the value of the Disguise Self spell in some regard for the toolset? I confess I don't know how the toolset determines value for custom content, so I'm just genuinely curious as to how it differentiates and is possible to create similar effects on some items but not others.