If the market was truly "ultra-competitive", AMD wouldn't have stuck with 6c12t at $200 for three years, it would have pushed forward.
This comes back to my last point. What exactly does the average user currently "need" more than 6-cores with 12-threads for? The vast majority of people are not going to see any noticeable difference in performance in most common software from having more cores and threads than that, and even that's probably a bit more than what's needed by most. 8-core, 16-thread processors are currently kind of a niche product, as most software doesn't scale well to numerous threads, and that definitely applies to core counts beyond that. Maybe we'll see some good use-cases crop up in the coming years now that higher core counts are becoming more common, but at the moment the benefits are a bit questionable.
It sounds like you're just disappointed that the unrealistic specs that were rumored for the 3000-series late last year didn't turn out to be true. Honestly, they seemed rather unlikely to me from the start. If AMD had made their latest 6-core, 12-thread processors available for $100-$130, what exactly would most people have to gain by buying anything more? Again, AMD needs to be profitable to remain competitive, and if they are making very little on each processor sold, combined with the limited production on the 7nm process, they're going to have a hard time staying competitive, and could end up stuck in another Bulldozer era. Research and development isn't free, and that's something that should arguably be figured into a processor's cost.
Also, it's worth pointing out that we kind of actually got much of that rumored hardware at those price points, in the sense that first and second-generation Ryzen processors are now available at those prices. You can get a Ryzen 2600 for about $120 now, or a Ryzen 1600 for about $100 from some retailers. The 1600 was a $220 part when it launched just two-and-a-half years ago, and now it costs less than half of what it did then, and is actually priced lower than what the 4-core, 4-thread Ryzen 1200 originally launched for. Again, that's approximately a doubling of multithreaded performance at those price levels compared to what AMD made available when they launched first-gen Ryzen. Likewise, you can get an 8-core, 16-thread Ryzen 2700 for $170, or a 2700X for $195, if you are willing to trade the better IPC of a Ryzen 3600 for more cores.
Or on the Intel side, an i5-9400F sells for around $150, while offering better performance than their i7-7700 did for around $300 just two years ago. At that time, you would be looking at dual-core i3s with less than half the multithreaded performance and lower performance per-core within that price range. So yeah, I would say competition has been significantly improving performance at a given price level, at least as far as multithreaded performance is concerned. Maybe you don't see massive gains in terms of lightly-threaded performance, but again, a lot of that comes down to being limited to what the current process nodes are capable of.