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It means that even though the battle was won, it was so expensive in terms of men and material that the battle might as well have been lost.

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Q: Bought so dear high in price as to be indistinguishable from defeat?
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The homograph for "dear" is "dear." It can mean both loved or cherished, or expensive or high in price.


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Bearing a high price; high-priced; costly; expensive., Marked by scarcity or dearth, and exorbitance of price; as, a dear year., Highly valued; greatly beloved; cherished; precious., Hence, close to the heart; heartfelt; present in mind; engaging the attention., Of agreeable things and interests., Of disagreeable things and antipathies., A dear one; lover; sweetheart., Dearly; at a high price., To endear.


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A homophone that means highly valued is "price".


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