It's just because it's a US product (even if it's actually made in the Far East) being sold in Europe. Shipping would be on top of the $160. To be fair, that's a slightly inflated price due to the current exchange rate.
For comparison, I got a cheapo 30 sized trainer for £47 ($80) and a Protech Summit pattern plane is $172. A Funtana S40 will set you back $237. These are all British prices, and Continental prices are usually the same or higher for US ARFs.
Actually, looking at some German sites, I may be able to get a slightly more reasonable price there...
The fuselage issue seems a bt strange. I could understand that it might have a failure by design, but OTOH most models don't fail with ordinary 'bouncy' landings. Still, you guys have certainly talked this plane up enough. We shall see...
Matthew