Personally i think Houde is worth the price. As we speak i am drinking some 2007 Early Spring Wood-Fired NanTou Oolong and i can say is is very good. I buy tea from other sources here and there (I really like the Adagio White Peony) but Houde is consistently very good for tawianese oolongs.
Also, you are wrong that you can only get 2oz packages from Houde. If you select 4oz you get a 4 oz package. And the bulk savings go up from there. I must admit though, i usually don't buy larger than 4oz at a time because with fresh high mountain oolongs they oxidize (loose flavor) gradually after the package has been opened. That is what makes 2 oz packages so great, it will be nice and fresh when you open it!
Also, prized teas like Li-Shan rarely come in packages over 2oz (50grams). This is partly because they are expensive per oz and partly to preserve the freshness.