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Raspberry Pi is now manufacturing 70,000 Pi 5s per week, will surge to 90,000 in February
(www.tomshardware.com)
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It's pretty rare to have high performance requirements in an embedded application. Many people load one project onto their pi and for most cases it's overkill. If you need modern codecs, then buy a streaming box. If you want a nas, then buy a nas. You also need to factor in the additional ~$20-$30 of stuff that you need just to boot up a pi.
So your argument is that a raspi 5 is too good of a machine for most use cases? That's a wholley different argument than the "raspi 5 is too expensive for its specs."
I would argue that you can't really speak to people's individual computing needs without knowing what they are.
Im personally using a 5 as a media box with libreelec, and after paying for everything, I'm out $90. That's still $10 cheaper than a roku 4k ultra, and it does everything and much, much more without locking me into a ad-riddled ecosystem on static hardware. That's a great value for money that the $30 SFF options can't compete with.