Have you stopped and thought about what you're saying or are you just assuming this is expensive because it's Microsoft and they're Bad?
Let's actually look at what you get for your money (I'll just go by current consumer pricing since it's easy to find/understand):
Microsoft 365 Family:
$130/year
6 people, 1TB storage per person
Each person gets 5 devices for all Office apps
Higher AI usage limits than free (only primary user, not shared)
Let's try to buy this from someone else:
Google: $99/year for 2TB, shared between 6 people, but your limit is 2TB total. No Gemini in Google apps unless you're paying for Google AI which bumps this all up to $20/month with no additional storage. I can't actually see how much additional storage costs to make this equivalent to 1TB/person without signing up.
Apple: $420/year to get 6TB of storage shared between 6 people. iWork apps are garbage, no AI included. iCloud+ does have some side features like private relay, custom domain email, etc.
Proton Family: 3TB, $288 a year
pCloud: 10TB family lifetime plan is $1500, equivalent to about 10 years of paying for Office 365.
All this to say, tl;dr, Microsoft is actually offering one of the better deals out there especially if you want to give a significant amount of storage to each family member at a low cost.