Two months ago I bought a M4 Mini w/16GB and 512GB HDD for $599. Granted they're up to $799 right now, but a Rpi is now $350 when they used to be $35?
You're correct; they've jumped the shark.
The linked model has 16x the amount of RAM that $35 model had. You can still get a 1GB model for less than $50.
Not really the Pi's fault - really it's AI causing the massive increase in HW prices (notably RAM in this case) that has really destroyed the market for the Pi's.
Same thing happening for servers, gaming PC's, cell phones, so on.
Two things to note:
1) Apple had long term contracts for memory which will run out. Afterwards it will be very interesting to see what they do.
2) RPi uses older memory that is much much more expensive to buy in the market as manufacturers have dedicated capacity to newer formats used by AI boxes for KV caches