As someone dealing with printing and shipping costs right now, I totally understand where they are coming from. The product now is in the price range of a ten year old who does some work for his parents for pocket money. Pages are at a premium; you can't substitute the adventure for the character generation rules. The set would cost more.
So you can (a) make it cost more do the sneering adults deem it to "meet their needs" (and by "needs" I mean "wants"); or you can (b) produce a thing that kids in Toys R Us will buy cheaply, try out, use simply, and maybe look up in the web (with the help of cards and things in the box).
And anyone calling this approach "stupid" is saying more about themselves than anyone else. It's a smart approach, and it'll probably work. But, no, it's not D&D for £8, and if anyone is hoping for D&D for £8 they need to really recalibrate.
(Though, amazingly, it actually is - the chagen rules are free! D&D for £8! Seriously. How amazing is that?)