I won't argue that the core books for 40k and WFB aren't the best values for the game. They're huge and they're chock full and relatively cheap. However, they're useless without a $200 army and the appropriate codex. As for D&D, all you need is the PHB and dice if you're playing. Add in the MM and DMG if you're running (tripling the cost). You don't need any other books. I played this way for two years because I like apporximately one of the sourcebooks put out.
Codices each have only 2 useful sections: the army lists and the pictures. The rest is total crap. GW fluff is highly derivitave and contrived and should be a free download on their website. Heck, they'd do better following most other miniature games leads and making the rules and rulebooks free downloads. They make their money on the minis anyway, not the books.
Making plastic minis is really expensive which is why few companies do it. However, it still doesn't justify that high of a price. Citadel is passing their up-front price for plastics onto me and I refuse to pay it. I-Kore is coming out with plastic minis here in a few weeksn and they're price increase is negligible. As for their quality, I like it. Some sculpts are crap, but over the short time they've been in business they've drastically improved in quality. Citadel is good, but not good enough to justify the price. Not at all. If you're willing to be charged exobitatnly for "the best" fine, but I'm not. Especially when being "the best" is completely subjective. Warmachine minis kick the tar out of most Citadel minatures, by the way.
From the other replies I'm glad I'm not the only one who has had trouble with GW store employees. Granted most game/comic shop owners are completely unhelpful and can be downright mean, but GW certainly doesn't rise above it.
And sure I can and do proxy at home, but try playing in a league with proxies...or events. Doesn't happen. Half the fun of the hobby is the camraderie and competition at events...events that I can't play in with proxied models. It only makes sense that they don't allow proxied models, since they want to encourage sales, but don't try to tell me that its okay to proxy when it absolutely is not.
In the last six months I've had seven of my friends drop GW. They're longtime players (I've only dabbled). Four dropped after the internet announcement. The only way they felt GW models were worth it was with the 30% discount you could get at most places. They'll still play with what they have, I'm sure, but they're done buying for good.