This was actually Jason Snell's point, come to think of it, more than overpricing: Apple's entry model has ALWAYS been underpowered. Yet, here we are. This strategy is working perfectly fine - Apple doesn't need to change strategy. It would be great for you and me if they did, but I don't expect them to do anything out of the kindness of their hearts.
I have an M1 8/256 Air, and it's working totally fine for my use, and is faster than my more expensive Windows work computer. It sounds like it wasn't for you, and that's perfectly fine. It's a strategy that has worked for decades, it's silly to think that it will suddenly stop working now, in a market where the number of people who can afford to buy more expensive things are steadily increasing.
Well they're not, and he's wrong!
Retina MacBook Pros (excluding that weird ME864 model) were perfectly reasonable machines for the day, and perfectly priced. Maybe they were like $200 more expensive than comparable Dell XPS with 4K screen, but who cares, that's not a dealbreaker; plus, Mac was better in some regards anyway.
Non-Retina MacBook Air provided immense value. Again, maybe it costed $100-$200 more than comparable "ultrabook" (remember those?) with same specs, but it was a great overall package. Hell, even MacBook 12" was quite decent; especially Early 2016 model, when Intel finally came up with a good Core m processor.
Entry level iMac 4K and 5K were insanely good, too. Especially first two 5K models with real Fusion Drive based on 128gb flash. Expensive, sure, but reasonable, and unmatched by anything else on the market.
But nowadays...
M1 MacBook Air is a great value, of course; at $750 (Black Friday price) I would easily recommend it to many people.
But. It's not 2015 anymore. In 2024, 8gb of RAM is not enough, especially for "average users" (because they don't stare at an empty screen, they use many tabs with modern websites, usually in Chrome, plus "native" web apps like Discord), and 256gb is barely enough.
People will be frustrated with these current entry-level Macs, it's a question of when, not if.
It's up to Apple to decide if they want to earn more money but have angry customers looking elsewhere, or less money but higher user satisfaction.