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I don't really have a use case, but I would have considered picking one up anyways sometime down the line if it was a good deal. It's unfortunate that it's not. I was really hoping that Valve would try to subsidize it a little to at least make the cost not as painful, but I understand that it was never an expectation for them to do so.
I think it'll sell anyways, since there are people who don't want to worry about the technical challenges of building their own computer, and also don't want to spend time looking into and vetting pre-built brands. They just want a pre-built from a brand that they already know and trust. And I think the Steam Machine would fill that niche. It's a niche of a niche of a niche, but I suspect there would be enough people like that to still sell a decent number of Steam Machines.
As for the prices of other consoles? Steam Machine is such a low volume product that other consoles would not feel a thing no matter how successful it sells