The launch price of the GTX 1060 3 GB was $199 I think and $350 by far isn't a normal price for it it's an inflated price due to mining and graphics card shortages potentially because the sellers want it that way (and because new cards is coming.)
The profits has been taken by the retails but for the manufacturer sure they could try to make a lot of cards and get a larger part of the market share but on the other hand the market collapsed they would be stuck with a lot of cards which they had to sell at a discount or something. Even more so if they actually earned more money on the inflated prices then the trade-off is simply doing what they do safe and sound and still earn a lot of Money per card or make more and sell more at a lower price with a lower profit per card and then take additional risk. Sounds nice?
As such $210 isn't a great deal considering the card is used. Had prices been normal something like $120 would had made more sense. And if Nvidia launched a 1160/2060 why would people want to buy a used 1060 for $260?
We don't know when the new cards will come out but the last gen had 1080 come out in late may 2016, 1070 early june and 1060 6 GB in july and more models later so if that's something to go by the launch may be done in steps and even if the 1080 come out "soon" you may have to wait a bit more for a 1060.
Nvidia has just said that they will put the same GPU which is in the 1080 and 1070s into 1060 cards in China. As for whatever that's simply to meet up demand from them where the income is lower and they have happened to have a bunch more of GP104 GPUs sitting around in inventory which can be turned into 1060 cards or if it is because 1080 replacement is imminent and they won't need / be able to use those there and hence decide to use them for 1060 cards which they can still sell for a while I don't know. Possibly a combination in that 1080 come first and China have a demand for graphics cards so that's where they end up.
Your old graphics card is indeed much slower than a 1060 though and getting a low/mid-range card of the Ampere/Touring line-up make take two months or maybe more depending on when they are released so what you should do kinda depend.
But of course a $210 used GTX 1060 3 GB isn't AMAZING considering what they actually launched at.
And once new cards are out I don't think you'll get $260 for it. $160 maybe.