I'm not sure exactly what people expected Nvidia to actually do. Demand for your GPUs double to triple normal demand (from gamers and pennypinching GPGPU enthusiasts), do you:
a) Increase production as much as possible, request fab houses build up more fab capacity (several years lead-time)[1], and pay a premium to 'buy out' wafers from other customers[2]? Attempt to implement software - and later efuse - limits to make gaming cards less attractive for mining? Fob off dies that fail the lowest binning threshold for gaming cards as 'mining accelerators' in order to increase supply without impacting gaming cards. And still end up with OEMs raising prices due to supply still not meeting demand. Remember, FE cards make up a few percent at most of GPUs sold, the vast majority are built by OEMs who buy the chip packages alone from Nvidia.
b) Do nothing to increase supply, have prices increase even further and supply be even tighter, but wave a little flag saying "we're not giving into crypto!" and declare victory as miners buy up that even more limited supply at even more vastly inflated prices?
c) Utilise precognitive psychic powers to tell that a chip shipped to an OEM will later by mounted to a card that is sold to a wholesaler that sells it to retailer that sells it to a reseller who sells it to a miner, and refuse to sell the chip?
[1] And later have to cancel orders, leaving fab houses in a hole and who also have to put fab expansions on hold.
[2] Why shortages of small-die-area volume ICs dried up as those chip buyers were priced out of the market, leading to all the well publicised effects on the supply chain for cars, consumer electronics, etc.