For what it's worth, there are legitimate tea-tastings in China (which is probably why this scam is so successful). I think the most we ever paid for one was around 40 RMB (currently, about $6 US). These tea-tastings are offered by tea merchants (you'll even see them in Chinese supermarkets), in the hope that you'll like the tea and want to buy some. Each one that I've attended includes a detailed discussion of how the tea is grown, what makes it special, why it's good for you, etc. In other words, you get an education, along with the tea sampling, as well as observing the proper, i.e. traditional, way of serving tea (which is a very wet process ).

Most tea houses are the Chinese equivalent of American coffee shops. The prices may be somewhat inflated, but nowhere near what is charged in the tea house scam. At the tea house, you order off a menu (which does list the price -- even if you don't read Chinese, the prices are still in Arabic numerals). There is no ceremony or explanation -- you'll just receive a pot of the tea that you ordered. A good tea house will bring over boiling water and refill the pot from time to time.

If your wife enjoys tea, I'd recommend going to tea shops, rather than tea houses. However, bear in mind that, in China, tea occupies a very special place in the culture and there are teas that can cost more than $1,000/pound. However, in legitimate tea shops, all the prices are clearly marked, and you'll be buying it already wrapped and boxed (though, occasionally, some shops will have tea, particularly local teas, in loose leaf form.