Yeah personally I'd love to see MS go for it and create an absolute monster even if that meant the console pushing $500. I think it would do ok and don't really believe in the 'needs to be $400' statement, not when they've already got the standard Xbox One S for the cheaper segment. I don't even think $500 is THAT much for a premium console tbh especially when people are so willing to spend even more than that on other electronic devices.
It being $500 would be a death sentence. They won't do that. It'll be $450 at most. More likely it'll be $400.