Yes. The books has spots for the Legends of the West sheet (spaces for them both front and back (with text descriptions of each character). There's also a facsimile image of each stamp on the applicable page of the book.
Here are a couple of roughly scanned images of the book's content:

Upon closer examination, it seems the answer to my first question as to how much the book cost new is answered in the reverse side of the stamp selvage that states the book could be ordered from the USPS for $24.95, plus 50c postage = $25.45 up until 04/01/1995 (it doesn't state whether stamps were included in it for that price, though.)
Considering I bought mine for $2.99 in 2012 (without stamps), I got a 88.25% discount on it!