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Prices going up is not a good thing for attracting younger modellers. There's been a lot in the news over here of late about Hornby sales climbing, however I do wonder how much of that is due to older people who, having retired, decide to start modelling again (as opposed to the youth market). The major problems with this will occur when the current generation of older modellers are forced to leave the hobby, either due to failing eyesight or sheer old age - who will take over? I agree that the constant efforts to make models more detailed is pushing up prices (though the extra detailing is worth the money to my mind). However, there are sensibly-priced models out there for beginners. Walther's new Heavyweight passenger cars would not be suitable for a beginner's 4x8, but they also offer 60' Heavyweights in their Trainline range that would be perfect - they don't look as though they have much less detailing than the longer cars and the prices are considerably lower. Bachmann's new DCC system will also appeal to new modellers due to its simplicity and low price. The fact that many of Athearn's Blue Box kits have now been discontinued in favour of RTR (essentially the same model factory assembled and sold at around twice the price!) cannot be good for beginners. These simple, robust locos and cars have featured in pretty much every modeller's HO work at some point, and are especially attractive to new modellers due to the combination of low price, easy assembly, and the fact that the finished product still looks pretty decent despite advances since they were first tooled up. When I started in HO in 2001, it was possible to buy Athearn locos for around £30 or so. Now the supply of Blue Box equipment at my LHS has all but dried up, there are only two sub-£40 locos available (Walthers GP9 and FA1) and it seems to be necessary to budget around £40-£50 for a loco (around $80-$90 if I remember the exchange rate correctly). While the quality of that loco is far higher than the older models (comparing Proto 1K RS11s with Athearn SD9s here!) the extra price may well push it out of the reach of younger people - I can remember saving for several weeks aged 11 to buy an N-scale switcher that cost £20, £47 worth of diesel was a daydream for me back then! To conclude, this can be an expensive hobby, but it doesn't have to be. There seem to be a host of discount mail-order suppliers out there offering decent models at ludicrously low prices, and there are decent, new, cheap models coming through - Bachmann's range has really improved of late and there are some very good models in there considering how cheap they are. I suspect the real problem is still public perception - kids don't like to admit being modellers as it tends to get them bullied at school (I know this from first-hand experience!), and as they get older it's seen as "playing with toys" by many outside observers. Interesting how someone spending £500 on designer clothing (that will probably be worn just once) is considered cool, yet someone spending the same amount on a model that will last for years is not... Just my thoughts!
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