If it was about prestige, then apple would still have kept the tcMP prominent on its site ( never mind its shortcomings because it was still the most ‘powerful Mac’ until recently )
Or continued to invest in upgrades, even if minor, until they had a replacement ready.
Well they said they designed themselves into a corner on the thing so at best it would have had slightly better Xeon CPUs and FirePro GPUs, both of which would have been far behind what PC OEMs were offering.
This is what i find confusing about the Homepod - "Homepod" should have been the Apple home / homekit server - a device with multiple video and audio in, that sends video to to AppleTV, audio to a dumber version of the homepod speaker, that has synology-like bulk storage bays so all those laptops at home with tiny ssds can get access to large local photo libraries, that acts as a local meshnet for all iCloud connections for all devices within its range - basically a consolidator for everything Apple's server and network enabled functions do while you're in the home, and using it's iCloud connection to provide remote access back to that data when outside the home.
Apple's philosophy is that everything should be in the cloud at all times in all places. The idea of a traditional centralized media server in the home would run directly counter to this.
The days of "the Digital Hub" are well over in Apple's mind.