You say "plastic" like that's a bad thing. You can easily cut plastic and assemble models with plastic glue instead of super glue (plastic glue dries to the point where it will hold a plastic piece in place in about four seconds, and is completely solid within a minute or two, yet it doesn't stick to skin, it's just kind of oily if you get it on your hands; whereas superglue (what one requires for metal) is none of those things). I don't know shit about Flames of War, perhaps there's no assembly involved, in which case it's not really the same thing now, is it?
You're also looking at space marine pieces, the herp derp faction that gets pushed on new players. Their basic infantry squad is $40 for ten pieces, their "heavy" infantry is $50 for five models. For comparison, every other faction (except perhaps other SM factions, like yiff marines and chaos marines) gets ten man infantry squads for $25, and lighter vehicles are usually $30 something (Chimeras are $35, Raiders are $33), with full fledged tanks going for $50. Assuming you're not buying them at a discount. Sure, they're still more than other wargames, but they're made in the US (the equally exorbitantly priced paint is made in france), with the exception of the metal figures they're highly customizable, and most of the newer models are absolutely gorgeous. People drool over Forgeworld's Death Korps models (which, by the way, make even SM look cheap, at about $60 per ten man squad), but the new deldar pieces, and some of the daemons (some just look retarded, like all of the greater daemons, as well as fiends of slaanesh and plaguebearers, all of which are tragically rather good units to field...), are just as beautiful. I hear the prototypes for the new Sisters of Battle are amazing too. (As an aside, I suppose this means that either they've gotten better modelers to design the pieces, or their modelers have been getting progressively better over the years)
Sure, it's still expensive, but compared to almost any other hobby it's either on par or cheaper (hell, look at (console) gaming: you fork over a few hundred for a shitty, locked down computer, then pay a huge premium (at least $60) for buggy ten hour games that you get to play with a mishapen vibrator with a couple of buttons and a miniature doorknob tacked on). The ~$60 worth of models I've bought (which weren't at the cheapest I could find them, I bought them at local game stores rather than ordering online) have kept me entertained for around 20 hours so far, just in the assembly and painting (admittedly, a lot of that was getting the basics down, but I have yet to even play a game with them (since, you know, it's not a functional army at this point)).