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$650 million is closer to my super-dreadnoughts in the 1910s. 40 ktons, geared turbines, K3 armor, 4x4 14/53.
It gets worse as the game goes on. My 1930s designs are 75 kton monsters that cost $6 billion or more apiece.
There's not been a lot of difference in cost between v1.4 and v1.5.
I think ships just got a lot more expensive at some point.
They have scaled up costs substantially.
You have two criteria...will it die easily?, and how long can I continue to upgrade it and keep it competitive?
Some expensive designs can go through three or four upgrade cycles and simply run out of expansion capacity. A ship that can still be effective after twenty years, with a mega experienced crew, is better than a stream of alternatives with green or cadet crews.
Edit: and yes, costs were increased. I cant recall when, though.
An 1890 start generally means your economy and tech will be move advanced than if you just start in 1900.
And believe it or not, some of those early ship battles can be quite fun and engaging. Yes the ships suck, but so does everyone's, so you end up with is close range furball fights where the first side to land a good hit generally has an advantage.
Also, it helps to train your personal skills of combat awareness if you start on the 1890 side and work your way up as opposed to starting in a more advanced timeline. This can only help you more as things get more complicated as the time line and tech progresses.
But Nitemares is right. Some of the early tech battles are actually quite fun, and learning how to manage TBs with short-ranged torpedoes is useful practice for setting up hammer-and-anvil attacks with real DDs.