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I think I'd rather things cost what they need to cost, rather than games being expensive because the console was cheap. That way the manufacturer won't be so invested in what you do with it after the sale, and you're not getting scammed on the software pricing.
Okay well you go try convince the general public to pay $1000 ($1700 today) for a toy. Your primary competitor is using games to subsidize their hardware too at $300 but completely locked and unable to perform general computing. Good luck.