I get the impression that the people who are doubting the cost of shipping being such a large factor haven't tried sending large boxes to and from Europe. A 500g 50cmx20cmx10cm box cost me 30 Euro to ship here, and a 20cmx20cmx20cm box cost me 20 Euro to send there. The rock band box appears to be about 1mx0.5mx0.5m, and even factoring in bulk freight discounts I would expect around 40-50 Euro per box in shipping alone, minimum.
Contrast that to similar boxes I send to and recieve from the US, which cost around 15-20USD, and I for one was not suprised that shipping paid a large role in driving up the cost of this game in Europe. Ultimately, I hope the game sells enough to warrant a full PAL region release, because the thought of the extra costs involved with personally shipping a 360 pack from the UK to Australia makes me shudder, heh.