Being forced to sell at massive discounts is not beneficial. It would be seen as evidence of failure.
This is sound wisdom.
Starting towards the lower-end is a lower-stakes proposition, for Intel. It gives them some breathing room and lets them adjust pricing until the product slots into a competitive segment.
That's harder to do with a big GPU, and I think probably nearly sunk AMD's Vega. Without the crypto-boom, Vega might've even been a financial failure (some early analysis by another website showed they probably lost money on each Vega 56 card, at launch).
Also, there's the reputational damage of launching a supposed high-end card that struggles to keep up with the mid-range.