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This isn’t really a mass product like a (subsidised) PS5. Have a look at what a Ryzen Max 385 with 32 GB board costs. RAM is only a part of that SSD is another one (both went through the roof). They aren’t doubling the price but they certainly pushed it beyond 1000 USD/ EUR. They are also probably the reason why much less of the thing will be available than planned. Before the madness started, maybe Valve targeted 700-800 USD or so.
If it wasn’t going to be mass produced Valve should have just made it with off-the-shelf components and mashed in an HDMI CEC controller over USB or something.
A valve rep talking to LTT said they can’t disclose the original price but the price increase is similar to the price increase of the steam deck. So from the video they conclude that the target was around 800USD.