If you think the price is unreasonable, don't buy. You have listed what you seem to think are better options. I agree that there are better options. If somebody else wants to spend their money in different ways than I do, let them. If Arduino thinks they can make money this way, let them try. If it works, good for them, I guess. If it fails, I guess the joke will be on Qualcomm. Honestly, Arduino could slash their price to be $1 less than a Milk-V Duo and I'd still by the Duo. If the Arduino was $1 less than an ESP32, I'd still by the ESP32. So I'm not sure lowering prices wouldn't just hurt them.
I have never bought an Arduino. I have bought a few Picos, a few ESP32s, and a couple Picos. And a clone of an Arduino Nano integrated in a system with a Pico for 5V logic, specifically, to implement a PS/2 controller. I don't see any advantage an Arduino has over an ESP32, aside from 5V logic support.