Just checked with O2 - again, not classed as anything other than maximum cost - £7.20/Mb and £2/min for calls, utterly outrageous. Slightly concerned that the great mobile phone solution for everyday life management might fall flat out there - no Google maps, WhatsApp, email and even TXTs on O2 cost 40p each. Might need to look into the local SIM trick maybe....
OK, further update. I couldn't believe that I was being told the truth so called again and spoke to someone who clearly knew where the Isle of Man actually was. So yes, O2 do include IoM in their EU Roaming Zone, so panic over.