That market is tough to gauge because the actual sales for those devices aren't large. However, people are clearly willing to spend due to convenience. Personally, I don't find the value of the PS5 pro because I have a PS5. However, if I didn't have a PS5 I would pay the fee to have a powerful machine.
At the end of the day, I think people are willing to spend $600-$700 for a console, and we saw that during the pandemic, but the major issue is how can you get the market to adapt to that pricing. I know people on these forums and social media are much different the general market, but I think there's a good chunk of people that would pay $600-$700 for a console if that was the launch price. It's just that you might lose a good portion that would stick to last gen
I think people need to realize that convenience and quality of service is much more valuable than power or price. There's a reason why people just leave their netflix subscription on. People don't want to handle stuff like finding streaming sites, stream content to a plex server, chromecast, apple tv, etc.
Consoles pretty much find the perfect balance of convenience and value, which is why many don't bother with a PC or build a high end one.