This is EXACTLY why AMD needs to sell Radeons for significantly less than their GeForce counterparts. Their biggest barrier to gaining marketshare in the GPU space is the number of people who have never owned Radeons and are therefore not comfortable trying them (a GPU is not a cheap purchase after all).
There was a time when the performance levels of top-end AMD and top-end Intel CPUs wasn't even comparable. The gap between them was pretty huge and now they've overcome Intel. OTOH, the performance gap between Radeon and GeForce has never been as big which means that catching up to GeForce wouldn't be as huge a task as catching up to Core was.
If AMD was able to catch Intel by offering value that couldn't be ignored, then there's no question that, using similar tactics, that Radeon wouldn't be able to catch GeForce. They just have to put more focus on it. As is often said, few people would choose an RX 7900 XTX over an RTX 4080 Super with prices set as they are. It was very telling however that when the RTX 4080 was $1200 and the RX 7900 XTX was $1000, the XTX outsold the RTX by a significant margin. This is because, at the end of the day, most people don't care about RT performance (as shown by every online poll that I've ever seen) and with high-end video cards, most people don't care about upscaling either because we don't use it. One of the reasons that I bought my XTX was to be able to play games natively and I'm sure that I'm not alone.