It is. I believe it's meant to encourage commuting by train, not long range travel. It's for example now significantly cheaper that the normal Berlin yearly ticket was while also increasing coverage.
People spend hundreds a month commuting by car so the issue is not the price of train tickets, it's that people prefer to drive as it's more comfortable and convenient. But now, if you cannot park or it will cost you a fortune you'll think 'fuck it, I will take the train'.
My point is that cutting ticket prices isn't going to make people suddenly use public transport because it's not an affordability issue.
Obviously it depends on where in Germany you are but in/around Berlin while driving is often faster it’s usually not such a big gap because you’d be stuck in traffic in a car but not on the train. It would often be more like ~50 minutes instead of 40 (but then you can read a book on the Regio/S-Bahn instead of focusing ok driving).