The price is normal and as to the question of if it is worth the price, my answer is "it depends".
Fundamentally, the P226 is simply a well made clone of the Browning HP. I'm simplifying things a great deal there but the bottom line is all the P226 has going for it is that it is a well made hammer fire handgun. Personally, I don't think the P226 is worth the asking price.
For substantially less, there is the SP2022 which varies little from the P226 save that it has a polymer frame and it can be had for ~ less than 500 USD in most US markets. Only in the most extreme conditions will the weapon prove inferior to the far more expensive P226. From any reasonable performance metric, the two weapons are more or less identical. Same features, same layout, same performance, same ergonomics, etc.
An alternative of course is any of the countless other clones of the Browning HP. The CZ75, the EAA Witness (which is a clone of the CZ75, technically), the IMI Jerico/Baby Eagle and lots of others are functionally similar to the P226 all at a fraction of the price. Personally, the CZ P01, basically a polymer version of the CZ75, seems like a winner to me simply because the ergonomics are fantastic.
That said, if we expand the scope of the discussion and I were to give advice on handguns in general, my personal preference is for the Glock. I have a Glock 26, 30 and 36 at the moment though the 36 has become my daily carry weapon. The Glock 30's claims of being "compact" are largely lies and a small handgun that holds 10 rounds of 45 ACP is still a large chunk of steel when it comes to concealment. Of the three, I can deliver more rounds on target quickly with the 26, prefer the ergonomics of the 36 but the 30 simply remains my best compromise between size and power. The only other gun I keep around is a Bersa Thunder - an unashamed clone of the Walther PPK. That was only purchased because it is trivial to conceal regardless of weather and it, like the glocks, is a weapon that I can shoot well without expending undue effort.