Most people didn't say the M1 was overpriced. Most people said it was a good value for once. That's partly why it got so much attention. In this case, most people are saying this device is overpriced.
The response to AirPods was more in line with OP's description, but I don't think the AVP is comparable. Everyone had a need for earbuds, there was relatively little competition in the wireless buds space at the time, $159 was within the realm of possibility for most consumers, and Apple's removal of the headphone jack forced many peoples' hands. The AVP doesn't have any of that going for it.