I would too...never found a country in the Med that is cheaper than here at the moment...but on holiday things are different as I do realise, eating out most days and the odd drink for the family can mount up even in Cyprus try doing the same in the UK, double it!!
It is all relative, Cyprus is very reasonable but as everywhere you do need to know where to go..Some Cypriots do know how to fleece you as do many other nationals in the Med..
ask a local where to eat and drink you could save a fortune as in your case..
The big problem with Cyprus is the cost of getting here, unfortunately flight cost are prohibitive and unless the CTO* do something about this they will lose out big time with tourism, we have told them but they just will not do anything about this, if I were someone wishing to come here, I may try Spain, Italy, even Bulgaria where it is cheap to get there leaving you with far more of that spending money, and it just may kick the CTO into it's lethargic response, Cyprus is losing it's tourism industry and they only have themselves to blame.
*Cyprus tourist office