Earlier quoted context omitted.
It's been speculated that base config macbooks essentially act as loss leaders for higher end configs, so overall, probably sales across the line net somewhere around that. The cost of the upgrades themselves can get to multiple times the actual market cost.
I feel like this is very obviously what they are doing: they have a small margin on the entry config where people are a lot more price-aware, and jack up the upgrade costs to get a fat margin on configs bought by orgs and power users who generally care less about how much it costs. Frankly, I'd do the same thing.
I don't think it tarnishes their reputation as long as the products are both actually good quality and there are inexpensive alternatives. Why not get some easy cash while letting your customers display their vanity? It reminds me of the "I am rich" app[3].
[1] https://www.apple.com/shop/product/MX572ZM/A/apple-mac-pro-w... [2] https://www.apple.com/shop/product/MWUG2LL/A/pro-stand [3] https://en.wikipedia.org/wiki/I_Am_Rich