Yeah, that's not an unreasonable price. Just ticking off the features (which doesn't tell the whole story) Gandi's email service provides something between fastmail's $3 and $5 plans, and similar to protonmail's $3.99 plan.

That €0.35/month plan was a steal. Most places don't even offer backup store-and-forward SMTP for that let alone full email hosting. Of course, now that they are pricing themselves the same as their competitors they will be held to the same standard, and we'll see how that holds up.