I don't think their shipping is unreasonable. I've never paid more than $9.95 even when I've ordered a half dozen kits in decent size boxes (1/35 armor and 1/32 planes). He may not ship as quickly as Sprue Bros. (another great company to deal with), but as you noted he's got great prices. His inventory is also real-time, as well as Sprue Bros., from what I can tell. The one good thing about Scale Hobbyist not shipping out that quickly, is that I've placed orders for things I've forgotten later in the day from the initial order and he's combined the orders and refunded the shipping for one of the orders. btw have you shipped anything recently via USPS or UPS? The rates have gone up quite a bit.
Jay