One thing to consider is that even if 3D V-Cache comes to AMD's 6 and 8-core parts, if they were to price those similarly to their 5000-series counterparts, it seems unlikely that would be enough to allow them to match Intel in terms of multithreaded performance near those price points.
At heavily multithreaded tasks like rendering and video encoding, the 12600K tends to perform relatively similar to the 5800X, which has 33% more cores than the similarly-priced 5600X. So, even a performance uplift of around 15% is not likely to be enough for a 6-core part to match it. Likewise, the 12700K can perform close to the 5900X in such workloads. So, a 6-core part at around $300, or an 8-core at around $400-$450 would likely get outperformed by the competition in most heavily-multithreaded workloads.
As such, it might not be all-that surprising if AMD were to reduce the price-per-core somewhat compared to the 5000-series, even with the inclusion of more cache. Of course, there's also the question of what lightly-threaded performance will be like. If the new processors manage to pull ahead at most light to moderately-threaded workloads, then that might potentially make similar pricing more viable, even if the processors are not all-around faster.
While I do agree that this is what they will do this is still terrible for them as a company, their biggest problem is that people don't know them and not supplying cheap cpus for people to try them out is digging their own graves in the long term.
One of the biggest sellers for intel is celeron and pentium, you can find them everywhere and everybody has seen them and worked with them at some point.
If amd waits to make money first it's going to be too late, if intel releases alder lake pentiums it's going to be extremely tough for amd to release anything against them.
Considering they were able to sell their processors as fast as they could make them for a long time following the launch of the 5000-series, I would say a bigger problem is their limited 7nm production. If production is limited, it doesn't make much sense to set a big chunk of that aside for low-margin parts when they can't meet demand for the higher-margin ones.
Budget chips can be money makers, but only in much larger quantities, and only if you have production to spare after satisfying demand at the higher-end. And while people might be familiar with Pentium and Celeron processors, they are generally viewed as being rather low-end, and lacking in performance. So I don't really think that does much for establishing brand loyalty. If anything, someone getting a low-end processor and finding performance of the system to be substandard may be more likely to tarnish a brand's reputation.
I do think it would be good to see them return to at least the ~$200 mid-range segment though, provided they have the supply to make that happen.
Great, so people are going to want to buy amd, go to the store to get a sensible cpu at about 100 moneys 150 at the most and see that the cheapest amd one is 300+ , that's going to make them think "well, no wonder they are better at twice the price"
How many people actually go to a store looking for a $100 CPU? The vast majority of people buying processors around that range will be getting them in a budget prebuilt system where the cost of the processor is obscured within the overall cost of the system. Self-built budget gaming systems haven't really been all that viable for the better part of the last year either, due to the graphics card situation.
And I don't see how gaining a reputation as a premium brand would be a problem. When it eventually makes sense for AMD to return to selling more moderately-priced chips, those same people are more likely to remember the positive things that were said about the brand during the time when they were only serving the higher-end. It might lose them some lower-end sales in the short term, but it can't really be considered a lost sale if that enables them to fulfill a sale at a higher price point instead.