I bought the PS4 Pro as well, because it didn’t feel like a bad value. It felt like a mid gen refresh where we got some extra power for no extra cost. Sony thinks players care about the extra performance for another $200, which is ridiculous. Up until this generation, consoles got cheaper over time as they become cheaper to produce. This is the first generation (that I remember) where the cost has stayed the same/gone up.
I fully agree that at $500, this would be a no-brainer for those wanting the extra power. A $350 base console would be a good pairing.
I think the cost of WoW has been fairly reasonable over the last 20 years. The subscription has stayed the same price of $15 per month the whole time, and if you know you are going to play WoW for the whole year, it is just $13 per month with an annual sub. The only thing that has gone up in price is the expansions which have gone from $40 to $50.
I think another point that you are missing is that WoW players often spend most of their game time playing WoW, which means they spend less on buying other games.