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First off, the British Royal Family is big business, bringing in billions of dollars of tourism revenue every year. All the Royal residences are huge tourist draws, as are things like the Changing of the Guard and other "historic" pageants. The Queen and her family more than pay their way in terms of sheer income to the Treasury.
Secondly, the UK equivalent of the US Executive Branch is "The Crown." Many foreigners take this to be the same thing as "the monarch," but it's not. The Crown is the monarch and his/her ministers in Parliament (meaning the Prime Minister and his/her cabinet). It also (unofficially) encompasses the Civil Service. Constitutional changes over the years have reduced power of the monarch to essentially nothing so, today, The Crown, really just means The PM, his Cabinet and the Cabinet's various departments (Health, Defense, Agriculture, etc.) But the legal language in which political power is held and transferred is still phrased very much in terms of the monarch.
So, while it may seem a small thing to simply get rid of the Royal Family, it would actually be a huge deal, necessitating a total rethink of the British Parliamentary system. There's also the matter of the Constitution. Britain doesn't have one. Or rather, it does, but it isn't written down anywhere. The British Constitution is taken to be the body of law and practice that forms the British political and legal system. If you think this sounds circular, you aren't the first. Nevertheless, it's worked fairly well in practice over the centuries, so nobody's in too much of a hurry to change it.
Getting rid of the monarchy would necessitate the creation of a new Constitution, a written one. That's a pretty huge job that doesn't come with any guarantees of success, so most people just forget all about the monarchy and pretend Britain is a regular old democracy, one that just happens to have a slightly loony family of inbred fuckwits as ceremonial head.
Like many things British, stuff that generally works doesn't get messed with. The Royal Family know their place, toe the line, and bring in the cash, so they're allowed to keep on doing whatever it is they do. Open supermarkets, mostly.
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