There were a lot fewer options for integrated devices in 2001. Also, the design of a line-operated SMPS is much more involved than for a battery powered buck or boost regulator. They usually require custom magnetics, external MOSFETs, bootstrapping considerations, opto-isolated feedback, and so forth. They have a lot more circuitry on the live side than a linear supply, so PCB layout for safety and isolation is a bigger concern. Because a lot of the switching noise is conducted back onto the mains, they are much harder to satisfy EMC requirements. Designing a supply that has good efficiency and ripple performance over the entire universal voltage range without grossly over-specing the components (especially the magnetics) is also non-trivial. Designing a line-powered linear supply on the other hand, is nearly as simple as designing a low-voltage supply.
8 person-months is probably a bit long, at least with today's integrated controllers, but designing a good SMPS from scratch is still a lot more complicated than designing a linear supply. So much that it is almost unheard of to design a power supply for a device. If you are designing something, your first thought is going to be to use a wall-wart supply. If a relatively low power single voltage supply is sufficient, even the most mass-market devices will use an off-the-shelf supply. Option 2 is an OEM power supply to be integrated into your device. These are available from devices like a computer power supply that have the power entry module, switch, and fuse built in, or devices that use screw terminals for power in and out. You can get them in a range of powers and single or multiple output voltages. If you are making lots of units, you might consider a semi-custom design where the PSU manufacture adapts a canned design for your needs, particularly if you need to fit in an odd shape.
What is quite common is to buy a single supply line operated PSU and generate additional voltages with on-board linear, switch mode, and/or switched capacitor supplies. These are much simpler to design and test, especially if the auxiliary supplies are low power -- for instance negative rails for an analog front end.