The price is what it is because the hardware is expensive. Every AMD Zen 5 device is very costly. And since Asus needs to make money from the hardware itself, they can’t afford to subsidize anything.
That said, Microsoft could have helped make it more appealing. Obviously, they wouldn’t subsidize it fully, because the chances of making their money back from software sales on a PC are low. Most people will just buy their PC games on Steam instead of the Xbox Store. However, they could at least include something like a year of Game Pass Ultimate with the device. That alone is worth over $300 and would make the $1,000 device feel more reasonable.