I'm not surprised at all by the price but it costing that much without a disc drive, stand and the increased cost in places like the UK are all BS aspects. £699 for this, really? Though people will need to get used to higher prices since just wait till the PS6 costs at least as much as this and likely even more with the eventual PS6 Pro going over 1k. It coming with a 2TB SSD is nice though and while the general power increase is much smaller than the PS4 to PS4 Pro the big ray tracing improvement and addition of PSSR should make up for a lot of that so it's probably gonna be a really nice machine for those who want a premium console gaming experience for a while.
What it won't make up for though is costing a lot more than the PS4 Pro while lacking the big 4K push that had so this should sell notably less than that. The lack of a more powerful Xbox Series revision will help it some however since a notable portion of the Series X owners will have bought it at least in part due to it being the most powerful console so some of those people will sell/trade it in for this especially once GTA 6 comes out. That'll sell more PS5 Pro's than anything else. Also the presentation was pretty dry overall but the most interesting part was Cerny saying that about 75% of people are choosing performance modes over fidelity modes which is nice since it shows that not just PC gamers but also most console gamers care more about FPS than getting the best visuals though the increase in 30fps only games in the coming years will probably push some of those people to PC.