It is different priorities you're right and as you say unless Apple look at the wider market, then they'll continue to lose ground. I was definitely in the market for the Apple TV 4K a couple of weeks back and started a thread here asking questions. I was actually happy paying the £179 for it as long as it had all the things I wanted. I compared it against the Cube and decided to wait to see if a new box came out later this year. It was clear the Apple TV was better at some things and the Amazon others. Then my wife got an offer that made the Cube £62 instead of £110, so we decided to give it a shot. As something that streams all the channels we were interested in and the fact it syncs well with the Echo's we already have, it's proven to be a great little device.Different priorities. Sound quality was my top concern before I bought a HomePod and, without getting into the specifics and derailing this thread, there isn't anything like it available. We use HomePod for Siri a lot more than I expected and it works fairly well (def room for improvement). I don't regret what I spent even buying the HomePod on day one.
Same with the Apple TV. My first, 3rd gen., one got put away when I bought an LG OLED, but the apps choked on our poor internet. Don't regret spending the money on the 4K TV for the much, much better buffering; slightly better IQ; and access to Apple Photos slideshows.
However, I think unless Apple ups the ante there are far more people like you than me and they'll lose what little ground they've got.
It may be that we go to Apple TV in the future, but it will have either come down in price if it matches the competition or deliver a bit more than it currently does for me. We are a very Apple family with Mac's, iPhones, iPads, Apple Watches etc and Apple TV would have been a nice addition.