By the way Framework also has no cheap options like $400-$500: the prices start with 750 Euro for tiny 13-inch version. I guess you can't profit much from selling reasonably priced laptops.
I suspect that the hardware margins might be there, and the sticking point is the additional overhead to cover support. When they sell ten million units and have six-sigma'd any manufacturing and support wrinkles to near-irrelevance, I wouldn't be surprised if they move down-market.
For the time being, there's apparently a customer base willing to pay those prices. They're not spec-competitive, but once you assign value to the brand, and the moral stance of supporting the idea, and the secondary value of intentionally-not-obsolete components, they have a lot going for them.
And notably, the customers who consider those factors to be important, are generally aiming mid-high in the market anyway.