why there is pal and ntsc?

The reason is to do with different TV standards in different terrories. This is pretty much why Handheld consoles have no region locking either.

As for pricing...well you have to consider relative earnings in those countries (though AKAIK we are indeed paying more even relatively)

yea, i think it just originates from when TVs were first being made. UK, AUS and europe had 625 lines on the pic than ***, US who had 525, but the ***/US refreshed at 60Hz rather than 50Hz. France also had a different system alongside PAL (i think) which was a bit HI-def with a lot more lines (but I might be wrong on this).

I don't think it really matters anymore though does it? What with HD TV's? Yea they still lockout regions but thats because of business. And yea, games are more expensive in UK - $80 for a new release.