I am trying to remain cautiously optimistic about the Pixel phones. I have wished, basically since my first Galaxy Nexus, for a Android phone with no compromises in hardware or software. And I always knew that, to reach that goal, Google would need to start charging iPhone/Galaxy prices, so the price by itself is not the issue.
I think the current Pixel phones are Google's first attempt at flagship level, in-house (kind of) hardware and it shows. The design of the phones is nice, but not stunning, and there are no extras on the hardware side (with the possible exception of the camera). Google seems to think Google Assistant will sell the hardware. It won't.
But I also think it is ok if these first Pixel phones aren't a crazy success. Google right now just needs to focus on the basics. Instead of trying to cram every high-end feature into the phone it is better that Google start simple and really nail every feature that IS included in the Pixels. That means solid camera, screen, battery life, overall UX experience. Everything I've seen so far suggests they may pull this off. Same thing goes for carriers. Google's previous relationship with the Big two carriers (Verizon and AT&T) have been a disaster. I would have LOVED for the Pixel phones to be available on all carriers (I'm on T-mobile) but I can understand the desire to try to finally have a successful launch with the largest carrier in the US with no terrible Galaxy Nexus/Nexus issues.
Are the phones overpriced right now. Absolutely. My hope is that next year, or perhaps the year after, it won't seem so crazy to spend $650+ on a Google Pixel because Google will keep improving on a single line of phones, rather than starting from scratch every year like they did with the Nexus phones. I loved the cheap Nexus pricing too, but it was a mistake for Google. They devalued android, and they especially devalued stock android to the point that now no one can understand why someone might want to pay good money for a stock android device. It might have been great for us but it was bad for the ecosystem, where only Samsung can make any money off android and no one wants to pay developers for apps because Android represents cheap/budget.
Google is trying to correct that mistake but it isn't going to be easy and it isn't going to happen overnight. My hope is that Google can actually follow through on their plans for once instead of giving up halfway through. We'll just have to wait and see.