Haha, I will be the guy that supports GW.
The reason they are still in business is they make smart business decisions. They support their games well and they have a high standard of quality that few companies adhere to. Their wargame rules for both fantasy and 40k are the best in the industry with the most people playing them. If you really play wargames (as in you have armies and play them regularly) you understand why GW is the best choice.
As for their prices, Warhammer is still cheaper than owning and supporting a XBOX, PS or Wii (well maybe not a wii). The point being, even the most expensive of the hobby games is nothing compared to owning a video game system or keeping up a computer. They also only do new additions every 5-8 years or so, when they are needed after getting feedback from real players over the years.
If you play Warhammer with people at a good store that supports it well (i.e. tables and terrain, painted armies, etc) Warhammer is awesome and not duplicative on a computer, i.e. Dawn of War (though DoW is a cool game, just not the same style of tactical play).
Trust me, I have been playing D&D for over 20 years, Warhammer and 40k for 16 and magic since it came out, I know my games. Everything I just stated is fairly accurate.

You just need a good Warhammer player network to make it worth it. This is one of the reasons to support good gaming stores, ironically.
As for Warmachine, their pricing is the same or higher then GW's you just need less miniatures to play. Both games are good, but Warmachine is smaller scale and doesn't scale as well as Warhammer because you have to roll each attack seperately and add modifiers, while Warhammer uses dice pools so you can do the attacks of a whole unit at once.