The majority of the component cost in the AppleTV is likely the storage so that's a big hit.
I have three Apple TVs that are ethernet connected and form the backbone of my home's Thread network, but they have <5 apps installed and would do fine with 32gb rather than 128gb. (And in fact, they are all currently 32gb models from the previous generation where those did include ethernet.)
That's the kind of pricing that makes me start to consider the Google 4K Streamer even if it's a UX downgrade - for $300 I get ethernet and Thread on every TV.