Sure, $3,500 is too steep for this to be a mass market hit with v1. But I think it's a fairly reasonable price to get the ball rolling, and they will see a fair number of early adopter consumers (much more than Google Glass or Magic Leap, less than Oculus).
I remember admiring flat screen TVs in the early 2000s when they cost like $10k: https://www.applianceretailer.com.au/eeqycmzusg/
I also used to have this SGI 1600SW monitor: https://en.wikipedia.org/wiki/SGI_1600SW. 1600 x 1024 17", $2,500 (equivalent to $4,490 in 2022)...