They are way too expensive IMHO. If I did not have the idea to hack this together with Minecraft, I never would have purchased them.
For $199 you get 3 bulbs and the wireless "hub". Additional bulbs to expand your collection are $59.
I always wanted to do something like this with an Arduino but never got around to it. When I saw the Hue I was pretty excited, until I saw the price tag. $200 for 3 bulbs? I'll pass for now. I'm assuming it's only a matter of time before they become reasonably priced.
They're not quite that expensive, but they're powerful and efficient LED bulbs that will last pretty much forever, and you can wirelessly control them.
They are still rather ridiculously expensive for what they are. Granted, they are worth whatever someone is willing to pay for them, but the margins on them must be eye-poppingly large.