I'd like to add some commentary based on a discussion with a well-placed source who understands many of the decisions behind the pricing of LEGO products.
In Australia the price of LEGO, unfortunately, is all to do with market expectations. LEGO's market research (for Australia) showed them that people (in general) in the Australian market view the LEGO brand as a "premium" brand, and as such are more willing to pay more for the product. As such, LEGO has decided to price themselves appropriately to reflect their "premium brand" status.
The analogy given to me was one of a business owner trying to maximise their profit on the items they sell - if you were a business owner, you would want to sell your products for as much as you possibly could without scaring off your customers.
When I pressed the source further, with the question "what can be done to lower LEGO set prices?", the answer was along the lines of:
"if you can convince the *entire* market to buy less LEGO in the shops, that will force us to drop our prices. But whilst we still have strong sales at these prices, the prices will likely stay at these levels".
Note, I don't necessarily agree with the higher pricing, but I understand *why* they have chosen to price higher in the Australian market. Anyway, it's good to see that many of the new 2012 LEGO City sets are priced much better when compared to sets of equivalent size released in 2010/2011.
Cheers,
J.P. Manalo