Spider-Man Miles Morales is guaranteed to be a great game going by the first game.
Godfall looks good.
Kena looks great
Deathloop
Returnal
Add to that unannounced launch games, the other third party games and on top of that enhanced backwards compatibility and this is easily a better launch than PS4.
People dropped $500(assuming PS5 is $500 too) on an Xbox One X to play the same games they already had with better image quality and performance. No new controller, same interface, same features and same games.
The $700 price tag you dropped ignores literally everything else you're getting(brand new controller, brand new interface, brand new features etc.) If someone bought a PS4 day one then they can buy a PS5 day one.