This is where we disagree. They need to sell in high quantities. What you suggest will not do that. Worse yet when nvidia come out with Volta not so long after and AMD are forced to drop price so sharply, it will only serve to alienate their early adopters.
In my opinion if AMD want to get ahead, they need to see Titan XP performance as 1170 tier performance (which historically is close to the previous Titan performance) by Q2 next year and price accordingly. That way they get a huge surge of interest and market share. Furthermore they will not need to drop price much or at all when Volta arrives.
Besides, I have no problem if AMD have what they call a premium card (say 290X) and charge £800 or whatever for it, as long as the one below is only 10% slower (say 290) and they charge £500 for it for example. This would be the clever thing to do. Satisfies most of AMD users and they make huge margins from those who must have the best.
The cards you say were not cheap fit with the prices I was expecting to pay for Vega. £500-600 provided it is at least as fast as Titan XP that is. So not sure why you mentioned that, just supports my point rather than yours