Definitely not pretty cheap. We need to stop normalizing high prices just because we happen to be in the upper part of the k economy. It's an entire week's pay at minimum wage. To have a screen with a camera and speaker on a weighted base.
I did a very quick search for "kitchen smart hub" and a lot of the devices (including some by Amazon) were in the same price range. Even the Meta Portals were $199 to $349 when released.
Google's Nest Home is only $99, so that is likely the cheapest version from a big company.
It's not extremely cheap for an Apple product. It's the same price as all of their accessories. It's similar in price to the cheap phones they sell. Why are you trying to convince yourself this is cheap?