I'm unsure of why people have these outlandish ideas and why people are surprised at basic logic. At first, it was my friends who swore up & down that the X1X and PS5 would cost 700-1000 dollars. They said that PS4 originally launched at 499 so it made sense. HUH?!? HOW SO? First of all they didn't even get the original MSRP right.
PS3 was the only outlier, whereas 360 launched at 399, which came to be PS3's default price as well once Sony readjusted the system specs. PS4 launched at 399 and X1 launched at 499 (due to Kinect), which MS later took the Kinect out to make the default price 399.
Here we are with PS5 & XSX. How are people surprised at 499 & 599 respectively? They are logical steps up following the previous generation. The XSX is more powerful & so it commands a higher price point than the PS5. Microsoft also has the rumored XSS & so it would make sense that that package would be competitive with the PS5.