I think there would be a huge market for~ $225 GPUs equivalent to a die-shrunk RTX2070 with 6GB of GDDR6 and PCIe4.I don't think anyone realistically expects them to be competing in the upper echelon of the market which is where the shortages are.
The only reason there is no shortage of lower-end cards is because they are the last to get updated, once everyone who didn't have the patience to wait for the lower-end models has already bought something more expensive.