I’d argue Apple TVs were one of the few cost subsidized items they sell, as when people could get 15$ Fire TV sticks anywhere they had to at least look competitive. Now that costs have gone up significantly and it’s basically an iPhone 17 without a screen it’s tough to keep the costs down.
an iPhone 17 without a screen, with half the storage, without a battery, without FaceID, without cameras, without cellular modem, without Taptic Engine, without…
The only part that “deserves” a price increase is the storage starting at 128GB now instead of 32GB, but it’s completely out of touch to get rid of the base model when nobody has any use for all that storage (even the 32GB) for what is basically a streaming box.
Hell, even their new HomeView device, which does have a screen and FaceID, starts at same price.