Your error is thinking that the storage capacity is the only worthwhile factor in determining the value of smartphone. But to answer your question, no, I wouldn't pay $800 for an 8GB iPhone… because I'd spend $100 more for the 16GB model.
The 16GB 5c is a mere €50 more over here in The Netherlands. And yes, that includes tax. If the point he was trying to make is that the conversion rate is ridiculous that take a peek at the nMP: that costs €3049 over here which translates to $4049 (or something like that). Still, people, not him, forget the State Tax US prices are subject to.
Personally, if I were in market for that 5c I'd get the 16GB model for €599. Or better yet, wait 6 more months for a new iPhone. But that's just me.