That is an appropriate argument, but afaik it's along the lines of Peloton's subscription pricing. Peloton's shown there's a clearly established market that will pay that sort of price for a home fitness service.
That is much harder to reproduce than simply building a solid physical product.
You dont buy a peleton because you need economical exercise. You buy a peleton as a form of conspicuous consumption and "exclusive" group membership (I'm a spin _athelete_!) .
The marketing hyperbole gets eaten up in our IG/social media obsessed environment.