As several others in this thread have mentioned, I too think that Google is trying to jump on the 'premium phones' bandwagon.
We as people enthusiastic about tech, of course see the good in Nexus - good specs, fast updates directly from Google, and all of that for a cheap price. But in my experience of owning two Nexus before, usually when people ask me phone I have and when I explain to them, even if the experience is smooth and fluid, the most they'll say is "Wow, great phone!" and then never even consider it in their next phone purchase - simply because the brand isnt well known to public and simply does not feel 'premium'.
At first I was confused with Google's move as well, but then I realise Samsung's Galaxy and iPhones are all priced pretty high, and they are the ones that are pretty much conquering the mainstream public now. So in order to appeal to more people (those who do not follow tech news that often), it has to make people think that it is premium, and one of the more obvious ways to achieve that is to slap a 'premium' pricetag on it.
Of course, all of us here know that even with a great camera and solid build, Google couldve made the price tag lower and still make profit. But that's not how the mainstream public think, and Google's intention here is very clear - releasing a phone that is appealing to a wider audience (proved also by the aggressive marketing going on rn), not just by making a good phone, but making a phone that people would associate with being premium, one that would let people queue in line for hours and be able to come out the store bragging about the newly purchased phone.
Needless to say it is still at an early stage and what has been said can only be assumed, so how about let's just sit around and see how all this turns out.