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Currently, Rocket Artillery is the same price as normal artillery and is slightly less effective.

Rocket artillery is very cheap to manufacture compared to normal artillery. The Katyusha Rocket launcher was basically steel rails on a standard truck. The Nebelwerfer wasn't much different than a large mortar. On the other hand, normal artillery is made of large amounts of quality machined gun metal.

I believe that Rocket Artillery should be less expensive than normal artillery.

I would think that the cost to produce the rocket ammunition was more expensive and labor intensive than to mass produce 105mm artillery shells. The cost could reflect that aspect.

I have found out that the rocket artillery can be upgraded only up to air defence level 1. Is this intended? (v10009; 1939 Campaign)

Good spot, it should be 2.