Agreed. European consumers are generally a little less taken by shiny boxes - more interested in functionality.
Concerning the price, I can't recall Germany's GST rate, but I remember it being notdisimilar to France's TVA of around 19.6% So, that may explain the price difference.
It's going to be interesting to see what Apple does regarding SIM locking. When the iPhone was released, I was of the immediate view that I was not going to pay AT&T $59.99 a month, when at a flat rate of 10c a minute - no monthly charges - my T-Mobile prepaid account was a much better deal given my usage (I don't make anything near 600 minutes worth of calls a month; often less than 100 - meaning I spend about $100 with T-Mobile USA total every year for network charges - not over $700 like AT&T's asking for), and would simply wait for a European or Aussie unlocked version, eBay it, and an uncrippled version of the phone. Well.... commercially, I don't think forcing people on expensive contracts in addition to paying quite a hefty price upfront will be very successful in Europe as others have pointed out (TCO of the iPhone in the US is still about $2000 on the cheapest plan - which is, of course, over 24 months). And then there are consumer protection laws - in Belgium, for example - which do not allow phones to be sold as SIM-locked.