I think there prices are reasonable. I mean they are not over the top, but you can expect to get good deals once in a while. This week they have a Toshiba on sale for $299 plus tax. Sounds good to me.
Yes. There is a lot of competition in retail based solely on price. Look for non-monetary benefits like customer service, friendliness, return policy, convenience, etc. to enhance your buying experience.
Fry's generally can be counted on for good prices and good product selection. You should always check the prices of competitors as well as check a product's ratings.
It really depends on what you're getting at Fry's on wether or not you're really getting a good price. Fry's is nice because it has a large selection of things that are hard to find elsewhere. Some of their prices are decent.