No, it's because, this is BS, just like expensive $5k - $10k bikes. These are "new golf" areas for mid-age men with excessive wealth to play with. Unfortunately that drives the market prices up, and hostile plays like this one for everyone.
Maybe it's BS to you, but there's always people who want something nicer. And if they can afford it, why not? If a 5k bike is what gets you to start exercising, it's probably even worth it.
Apparently there's a demand for well designed hardware that runs generic software.