Sure, if by "works" you mean "only works with other Apple products." The cost isn't just $500, it's also the opportunity cost of going with any other competing (and possibly better) product in the future. Apple's pricing is high, but is even higher if you account for the hidden hand of future buying power you give them. It's a brilliant business strategy as it limits your choice as a consumer for the lifetime of the headphones.
Say Apple decides to slow down your old iPhone again (what? no! [1])... Or maybe you just like the new Google Pixel. Sucks to be you, time to buy a new iPhone again ($$$) if you don't want your headphones to stop "just working."