The Yamaha FG730S has gone up in price here in the UK by the looks of it, now at about £199 in most places, compared to what it used to be at 160/170.

Would people still recommend this at this new price?

I love mine, and think it's still quite a good deal, but obviously not quite as good a deal as it once was.
i still see the natural finish fg730s for $299.99 in the states.

i'd say it's probably still a pretty good value for £199 though as that is more like 400 USD there is some other seriously good competition in this range... at least in the US.
in singapore, a FG730S goes for about SGD540( 204pounds or 400USD). guess guitars are just expensive out of the US.