I'm not surprised. The performance increase for most games will be a modest bump in this generation, plus GPUs are very overpriced. Many seasoned PC builders are waiting a while to see where GPU prices go, especially with Intel Arc's improvements. The strategy is very legit. The main reason why I have a newer GPU was that my last one died on me.
People that built during the Pandemic probably don't need to upgrade in a while, and had a hard sting from the costs. The many people that got into streaming are getting out of streaming. The ones that got one for streaming paid a really hard premium.
Many people bought gaming PCs because if they are getting a PC for work, might as well get one that could game. Many companies are returning to in-office work, going hybrid, etc. Most companies aren't likely to transition from onsite to remote if they haven't already done so (though I hope I'm wrong on this one)
AMD really did a good job on the RX 6000 series drives to where the 6000 series became a threat to the 7000 series (before the driver updates, the 6000 series would actually be much worse against it). If AMD gets the 7000 series drivers to have the kind of performance gains that the 6000 series had, this could make more people buy the 7000 series. The RX 6000 series launch drivers were horrible
It sounds like the AMD RX 8000 series is said to release around July (feel free to take this as a rumor). I can see some possibilities. If the RX 8000 series comes out, then price cuts may follow for older GPUs. I can see that making PC gamers want to upgrade. If you have a good RX 6000 card or a good RTX 3000 card, less likely you need one though. We may get some decent prices for the RX 6000 and the RX 7000 series especially