Theres very few films i have bought from iTunes, mainly older ones that were really cheap anyway, but i like using the rental option they have. Yes £3.50 is a lot for new releases but theres plenty of titles over a year old that are only £2.50.
£3.50 for new titles isn't that bad for me because i very rarely buy films anyway as most of them are a let down nowadays, and i don't often watch films over and over again.