Naturally, I wanted to reccomend them to people (many less technical) getting frustrated with Windows machines. The M2s were at least 40% more expensive.
This is really not more complicated than this. Their pricing model was wrong. I genuinely would have sold and upgraded if they were priced similarly. But 2020 M1s didn't decay in price at all over 2 years. So what else could they do?
If they had reduced the M1s and M2s, they would have sold an extraordinary amount of computers.