That's incorrect. You don't pay the high rate of income tax on all of your income, but only on income over a certain threshold depending on your circumstances. Actually we have pretty low income tax rates when compared to other EU countries:
But yes, you'll pay 41% on what goes over a certain limit (that is, above $41k annually or 32.8KEUR).
About your second statement, not really: http://en.wikipedia.org/wiki/Tax_rates_of_Europe
If you're paying less taxes and taking more home but things cost more then it may negate the advantage.
"Biggest drop in cost of living since 1933" http://www.irishexaminer.com/ireland/biggest-drop-in-cost-of...
And between 2009 and now, our economy has been flat at best. I think it's important to look at all of these factors when examining a country's economy. The real problem Ireland has is unemployment: we went from ~4% to ~14% unemployment in just a few years. This has added to the decline in the cost of living however (less demand for goods and services).
Rent and property have also fallen in value, making it cheaper to rent.