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People have complained about the price of PS2 itself, but I'm quite at ease with it. Yes, I *do* think it's another case of rip-off Britain, and I wish Sony had set an example with a maximum price of £199 - but it's not exactly a problem exclusive to Sony, is it? Almost everything is more expensive here than in Europe & the US.
When you think how the price of everything has gone up in the last 5 years, and then realise that Sony have stuck to the original PS1 price for the hardware, I think it's good going. You could argue that it is actually cheaper and better value than the original PlayStation; and of course, this time round you get a DVD player thrown in.
If your price for software is indeed correct, that also means that the games are actually £5 cheaper than original PS1 releases 5 years ago; presumably the "£40" will be £39.99, and original PS1 software was mostly £44.99.
Just my opinions, of course!