I think it's a little overpriced. It's using the same LG panel from the 2016 Ultrafines, but with a brighter backlight (also used in the Intel iMacs starting in 2015). LG then priced their Ultrafine $100 less, because they knew people would compare it to the Studio Display.Apple Studio Display is only a couple of years old, and includes fully redesigned chassis, camera, speakers. 5K IPS panels are still expensive - they are not "less than half when it was introduced".
LG 5K UlraFine displays sell for about the same price of $1.5K on Amazon right now.
What Apple charges for Studio Display is perfectly reasonable. If you can't afford it - go look for used models on eBay.
It's a good monitor, but you can get a lot for that much from other manufacturers. It's just a case of Apple forcing you to pay a lot for their design and branding.