I don't think paying $119 a year for five licences of Office 365 Home Premium for 12 months is particularly bad value, but some users have complained about the cost. If you're in that camp, a slightly cheaper option is on the drawing board: Office 365 Personal.
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The Personal edition will cost $9 a month or $89 a year for Australian customers. That $30 saving means you don't get as many licences: you can use it on one computer (either a PC or a Mac) and one tablet.
The new option will be released in the (Australian) autumn, which could be any time between April and June. Home Premium will remain and its pricing won't change, but the branding will switch simply to Office 365 Home.
If you live on your own and own a single PC, then Personal might be more appealing. However, in most contexts I still think Home Premium is better value (assuming you want/need to pay for Office rather than sticking with free alternatives such as Google Drive, Office Web Apps or LibreOffice). It's yet another example of decoy pricing: $119 for 5 desktop licences is much better value than $89 for one.
Announcing Office 365 Personal [Official Microsoft Blog]