I'm not a fan of the "Return to Tiffany" range, but Tiffany silver is definitely worth the price.
Silver is silver regardless of where you purchase it, what makes Tiffany silver special is the craftsmanship and the attention to detail. Tiffany is the foremost silver artisan and has some of the finest hand engravers in the world.
Tiffany is also positioning themselves as a "Green" company, they obtain all of their silver from American owned, environmentally stable quarries. They are also looking for alternative methods of production to save on energy and fuel. There was a recent article in Fortune magazine that mentioned that Tiffany boutiques are now using energy saving light bulbs and building boutiques using sustainable, environmentally friendly materials.
Tiffany, like every other Corporation passes the cost of labor, packaging and other business expenses down to the customer. You are paying for that little blue box and the white ribbon around it! That is part of the Tiffany experience though - The details are what make a company memorable.
Aside from having Tiffany silver jewelry, I have silver serving pieces, utensils and other housewares. I am very satisfied with the quality of Tiffany silver.
I highly recommend Tiffany products as a whole, but silver is what Tiffany is famous for.