I think there are a lot of factors at play here.
Any of us who started before the "mini-lab era" (say late 70s or earlier) can remember what it was like to drop a film off, wait a few days and pay quite a lot in terms of average wages for the processing and prints. If you were really lucky, you got a free "house brand" film back which would be bog standard 100ASA C41 regardless of what film you handed in. I was lucky living quite near one of the UK's mega-labs (PTP). But I was just a kid relying on my parents to furnish me with film....and even with decidedly middle class jobs, there was a limit to how much film we could buy and use. It was considered something of a luxury. When the free film started coming in, it was something of a godsend. Even if the disguised Ferrania film wasn't as good as Kodacolor....it was adequate and effectively free.
The real boom happened a couple of decades later, in the 90s and early 21st century.....when mini-lab processing and cheap, decent C41 film was *everywhere*. Before phones and before digital cameras became a practical proposition, casual photography was made possible by the amazing deals that could be had. Film was churned out in such vast numbers, especially 135, that it really was cheaper than a bag of chips (British sense of the word). Getting a roll back free with D&P became the norm, supermarkets, petrol stations, convenience stores and even market stalls sold film. Then when this bubble burst, film became even cheaper for a time as it was dumped onto the market for fast sale before it all expired.
Those are the recent memories, and I'd wager that for anyone under 40 or even 50 that's pretty much all they remember of film prices compared to income. Dirt cheap, omnipresent, the D&P services were likewise so cheap one rarely had to think about them.
Now the prices are probably more realistic. Until a couple of years ago, Color Plus was still very cheap. I could get 24 exposure cassettes for £3.50 or sometimes a little less. But with the bottlenecks in production, increased cost of all raw materials and the plague, it is hardly surprising the cost has increased a bit. Still...when Color Plus is available again it will be somewhere close to the target price mentioned here. Nobody knows exactly what Fuji are doing long term and whether C200 or Superia will make a reappearance.
As for lab services, I am very fortunate that I have a mini-lab a walk away from home. I can drop films off conveniently after work. £4 flat fee for dev and scan for all formats (even 127). I think that holds for E6 as well as C41. Prints are extra but still not expensive. I consider that a complete bargain. Other UK labs offer service around the £5-6 mark but I'd have to add postage, which doesn't make sense unless I gather together a few films. But the cheap labs are still there, and the ones left all seem to be doing good quality work.