Overall, the phone feels like mid range device both in terms of hardware and performance. Stock Android is smooth as ever but it's the same old story here. Software can't completely makeup for average hardware and specs. I still think it's a good phone once there's a discount, but not at this price.
Kind of feels like Google shot themselves in a foot. As you just mention, we all know why people gravitate toward the Pixels... Stock Android. However, from your observation and many others... people not only want Stock Android, but price is a huge factor as well.
Most are complaining that it should be priced at $600. So, lets try to price it at $600... but there's the Pixel 4a 5G at $500. And, I think that's the root of pricing it at the $600 mark. 3 deciding factors are 2 extra GBs of RAM, Wireless Charging and Water Resistance. Looking at it from their perspective, it doesn't make much sense to only charge an extra 100 bucks for those 3 set of features.
I honestly feel they priced it correctly just by going off their product lineup. What screwed them up is having that Pixel 4a 5G among the Pixel 4a and Pixel 5. If that Pixel 4a 5G didn't exist, then there's a possibility that we could have seen the Pixel 5 priced at $600.