they have a branding problem - they are starting to being perceived like a snobby brand with ridiculously overpriced products sold as a status symbol - a Balanciaga of creative tech basically so they are trying to put out some cheap good value products to signal a return of the original hacker ethos
The world of music hardware is an interesting one. You'll meet some amazing musicians who have been touring for decades and are still playing on the same guitar they got for $800 15 years ago. And you'll meet people who drop 5 figures on synth gear every year and have never put together a single track. If you're running a business selling electronic music gear, who would you rather target?
Not to defend Teenage Engineering, but I have seen a surprising number of OP-1s in music videos/live performances of bands I respect. Does that justify its price tag? I feel somewhat certain in saying "no," but I have no expertise. Love its aesthetics though.