The plan was likely cheaper but component prices are mad currently. It makes sense to launch but the price means it won't hit sales targets. Hopefully if the AI bubble bursts, component prices will drop and the Frame price will drop. But looks doubtful in the next year at least.

but the general idea is that the new should be better and cheaper.

Tbh, that doesn't really hold true anymore in the current tech market due to AI. RAM and Storage is several times more expensive than they were a year ago

Also, this has several years of sensor and hardware improvements over the Vive, so it doesn't need the separate sensors all over the room

If you already have an Index or Vive, or are willing to buy ones used you're better off doing that. But if you want a new headset this is likely the best you'll get without buying something that will sell all your data (aka Meta)