Given that they have 'Made on a Mac' printed on the final page and no photographer's logo unless they stick one on, I don't think much of their clients if they're daft enought to pay so much. Much as I love my Photobooks, some of the 'pro' versions that I've seen for people's weddings look far, far more impressive.
The books are good - although a lot depends on the effort you put into making them, making sure that your pictures look good and that their levels/colours are right. Another thing to bear in mind is that they do not look like glossy photos when they are in the book; if you put your nose to the paper, you'll see the pixels. But when you're looking at a normal face to book distance, they look great.
Something worth doing is upping the resolution. By default, the medium/large books create a pdf file at 150dpi to be sent to the printers; it looks OK and is presumably to avoid people having to sit for hours to upload their pictures. There is a little application called Prefsetter which allows you to go into the preferences file and set the resolutions to 300dpi.
