I suspect that Garmin has done their homework with their customer base, and are recognizing that there's a plenty big market for their upscale $500+ watches.
I also suspect that this is more of an 'aspirational model' of watch, which is clearly not meant to be sold to the masses in large numbers, but to anchor their image of hi-end quality and performance at a higher set point, by which they will be able to drag up the price point of the rest of their models which sell in the $150-500 range.
Seems like a reasonable approach to me, as they are already getting lots of competition in the midrange area even with upstarts like Coros, and they will likely get beaten completely in the near future in the <$100 budget pricepoint. Luxury items can withstand the onslaught of cheap Chinese electronics.
Watches in that price point are more jewelry than watch and have intricate mechanical movement. I don't see any of that with these watches. Likewise, many expensive watches retain their value, so while they are expensive, they are also investments. Garmin watches drop in value rather quickly. I'd almost consider them "disposables".