Well relatively, it kind of is. Compared to a $400 Pro, $500 X1X, and whatever the PS3 would cost now with inflation. Even the super cheap Dreamcast would probably be more than $300 now.
And compared to the cost of the just the CPU and RAM if buying in the PC space, it'd be amazingly good value (apples and oranges comparision beyond the cost of aquiring the silicon of course).
There are already lots of options though. Even excluding PC, which all games now support (even Death Stranding!), you're going from the X1 GPU and PS4 CPU up to the X1X - different CPU speeds, wildly different GPU speeds and even different ram quantities. Some games - even impressive titles like the Witcher 3 - even scale down to the Switch!
Options are with us. Pro, pauper, mobile, cloud, master race ... the market has shown it's interested in options. And price is one of those options people generally want covering.
That's because they've always had to. Where there's a choice - TV's, monitors, BluRay players, phones, laptops, graphics cards ... even cars, power tools, etc etc - there are some who will go for something newer and better than what they currently have even if it isn't the best.
If console owners would only ever go for the best, why are the PS4 and X1 still outselling the superior Pro and X1X? It says a lot that the X1S is still outselling the X1X despite the gulf in performance.