Sadly this argument fails when you look at when times were good for us in the UK (and actually the £ is rising well now). You'll never see a thread moaning that UK prices are lower compared to the US.
Apple is no different from anywhere else, the UK is v expensive and we mugs pay it! It's a little galling that AT&T and Apple are trying to open market share by lowering costs, and O2 are using their monopoly to raise them.