You can just use Chat GPT on your phone and get 90% of the same experience. But then it's a matter of branding. To some it's cooler to use a toy like this. Sorta like how Beats headphones are often beaten by headphones costing a 1/3rd.
Edit: At 200$ I'm not mad, it's ultimately a toy. Much better than the AI pin costing 700$ + 25$ a month.