Not if you ask me, especially if one is living in an inflated economy. I don't know offhand how things are over in Britain right now but the last time I was there prices were damn high.
Don't forget, the national identity is about as malleable as the government - perhaps even more so. If the people aren't identifying with the monarchy anymore, it should be allowed to pass into history.
Once upon a time, all Americans were British citizens. We rejected that national identity and instead chose to forge our own. The situation our "cousins" are in now is, obviously, a bit different, but the underlying principle is still there: when you don't identify with your national identity, change is in the air.
And if the initiative to remove the monarchy fails, so what? It fails. It's not like 9sublime is talking about fermenting a revolution or anything. If the people want to "scrimp" (nice diction) on those seventy-five million pounds, let 'em. I don't see that restyling their country from the "United Kingdom" to the "United British Republics" or whatever would kill their society's sense of identity.