GW costs are high for the size of game they advertise. Their entry costs are in the "astronomical" range for this particular hobby as well. Price is probably GW's #1 barrier in getting in new players. It's probably a massive reason that the aforementioned "burn and churn" happens...though how they keep getting people in, I'm not sure (it does sound like, on the UK side at least, it's a lot of kids using parental money).
We can go back to a need for consumer research at GW. Of course, that costs money, so GW would never do it on any reasonable scale. Anyway...
A fun question to ask during consumer research is "How much would you pay for...?" followed by a variety of items. You can use the results there to estimate which margin is going to make you the most profit. This does depend on the respondents not being ridiculous and answering in the vein of "Baneblade? $7!"
Looking at GW's current success, you have to wonder how many of their sales come from discounted indie sellers. Wayland, Maelstrom, The WarStore, Miniature Market, etc. - they're all churning out GW products at 20-25% off SRP. Local stores often give frequent buyer discounts as well - my old LGS had a punch card system that every gamer there slowly built up to a full card ($100) and then used that card to buy a bunch of GW stuff at 20% off.
Clearly GW can afford to lower the prices if resellers are selling that low. The margin is smaller for those indies than it could be, but the volume is high enough that they're making more money discounting than they are selling it at SRP.
I'm confident that GW could drop their SRP without dropping their wholesale price and make more money than they are now. I have no idea how much more, but I'm sure it's more than what they're getting now.
Now, the other issue with GW (well, same issue (insanity), but a different facet) is that they don't know what they're doing with resin yet. The Empire releases look good, and later batches of other 2012 models are working out pretty well also. The thing is, they're sending out between 2 and 10 copies of a Finecast model in some reports due to not being able to cast their own product. My last Finecast purchase resulted in me getting two chunks of useless swiss cheese resin and a refund. That can't be profitable.