Yes $700 is expensive for a console, but that's just what the market rate is now.
I remember buying PS3 at launch for $700.
I do. But I also have a lovely PS5 base for $500. If we're hitting the 900 mark why not just go full premium and jump into PC gaming? PS5 is competing with itself and losing horribly.
It's also simply a disappointing move from a software standpoint. Their showcases were basically for existing first party games and Hogwarts Legacy (oh and I saw a brief glimpse at FF7 in the sizzle reel. Square "soon™" Enix, great assurance), with a vague promise of "future games" using PS5 pro tech. It feels like Playstation has barely took advantadge of current hardware (which was the biggest benefit of consoles, having one explicit spec with almost all resources dedicated to your game), so even a great showcase full of new and exciting games would have been a hard sell to upgrade.
Pay 2-300 more to get maybe 10-15 games playing better before PS6 rumors start? Why not just do the full jump to PC?