These were stand alone products. I gaurentee you that no compnay could ever succeed with an overpriced stand alone product. However, if you have a luxary option, that is part of a larger ecosystem, then that changes the equation. Sony could sell a $1,500 PS4, that cost them $1,100 to manufacture, and make a huge profit per unit sold, since it is a premium product. That makes the 500,000 to 1,000,000 units of this luxary option very profitable and lucrative.

But... that's the part you still don't understand. The PS4 Pro doesn't automatically play PS4 games better. It automatically plays them exactly the same as the regular PS4. The "extra horsepower" doesn't actually just "do it's thing". The games don't actually automatically scale with a couple of adjustments. Developers have to put in extra effort to support things such as higher frame rates, longer draw distances, or higher resolutions.. They would have to do the same with the PS4 Money to Burn edition. Except for an even smaller audience. That aren't going to buy any more copies of the games than they would have if they just had a regular PS4.

Tell me, do CD manufacturers have to put in extra effort to support that $3000 Walkman? Do television and movie producers have to do more to support that $10000 TV? No? Well it's not the same thing at all is it? Why do you keep acting like it is?

So you took Sony using the CELL processor they developed at a ludicrously expensive cost for multiple uses, including servers, supercomputing, and the PS3, and leveraging the technology that was in a handful of industrial electronic devices, as an example of Kutagari "want[ing] PlayStations hardware to be scaleable so that it could be used in all of Sony's products to help streamline the expereince and connectivity between all Sony devices."

You are completely out to lunch trying to draw that conclusion from your sources you provided.

Note the higher the price directly relates to the lower the lifetime sales.  Look at what happened to XBox One.  I understand that price wasn't their only misstep in XBox One's launch.  However, it was obvious that launching at $499 was a severe handicap to the point that the Kinnect was removed from the system entirely to get the price down to a more palatable $399.  A $1,500 PS4 isn't going to sell a million units, and therefore wouldn't be worth Sony's time to develop, manufacture, advertise, and release it.  Sony already saw how unpalatable releasing a $599 console was to the public, and that was while riding all the good will of the PS2.  Sony lost over $3 billion it's first 2 years on the market.  A system 3x more expensive, even targeting a niche group isn't going to be worth Sony's time.  Also, OP was asking for a $5,000-$10,000 console, not $1,500.  So yeah, even more miniscule market, and even less worth the time and resources. 

70-90 million cars are sold globally per year.  So there is room in that market for 2 million sales of a luxury car.  Annual PC sales average 300 million per year, so again, there is room for that niche market.  Compare that to the PS4 selling 17 million in it's best year.  Now, imagine how small that niche market is going to be.  Sony isn't going to waste time and resources on a market that might net them a couple of thousand sales per year if that.

Uhm, a 3 34 inch 21:9 curved monitor setup with 4 Titan XP's an Extreme Intel i7 6950x, 256gb DDR4 PC setup would probably disagree with you.

not interested in luxury hardware but SSS ultra high quality software would be nice.

I might be missing the point but: Why? What would the benefit be and to whom?

You make a PS4 with an incredible processor and chrome wheels. Does it make the games more fun? Does it make you a better player? Maybe you can see textures that nobody else gets to see?

So who adds this extra content? What "artist" wants to create a painting that can only be viewed by the rich? Or offer an unfair performance improvement for those who can afford it?

Meh Notch and Kim Dotcom play a lot of games. It is more like human nature to play,

This would be for the people that have $20K or more home theaters. The art is already created for much higher resolutions and textures than even the best PC can handle. 

Just like any high end electronic, it would just be for the people willing to pay unreasonable prices for the absolute best quality experience possible on current technology. It is a small market, but it is the most profitable segment in electronics.

How? It'd be enormously expensive to make games on the exteme end, with a much more limited market.

There would be very little additional cost in game development. The games would be identical to the base model consoles, but they would be able to run at higher resolution and higher frame rates, with better post processing effects.

Games are built with much higher quality assets and effects than we see in the end game. The develolers spend a lot of time tuning back effects to meet performance requirements. With a luxury level console, it would have the brute force to produce results much closer to the reference material, and perform much higher levels of post.

On the Hardware side, they can sell at a massive profit per unit, just like we see with other premium devices. With everything being built on standard hardware, the R&D cost would be extreamly low. It is basically just a beefier version of whaf is already available, just at lower yeilds, which drives up the cost.