The R-78 costs more than a linear regulator because it is intelligent. It may look similar to a three-pin linear regulator, but it is far more efficient and inside is a controller chip that protects the converter against overload, over temperature and short circuits. This makes it very robust and hard-to-kill.
Even if the converter itself costs more, the savings that can be made in the primary power supply (because it needs less output current), assembly (because there is no fiddly heatsink, screw, nut and thermal paste to worry about) and inventory (one part rather than 7 parts with the linear regulator + heatsink + mounting + input and output capacitors) mean that the overall power supply cost can be lower with the R-78 than with the ""cheaper"" linear regulator.