So you're asking them to do what Nvidia is doing and to do it better than them. Do you think it is reasonable?
You are kidding. You must be kidding.
I am saying that they don't need to offer an alternative to every offered feature Nvidia offers. You ignored that part. Why you ignored that part? They only need to be competitive where it matters. Raster and Ray Tracing performance first, improve FSR secondly, try in time to create an alternative to Frame Generation.
And yes it is reasonable to ask them to be competitive to Nvidia. How are they going to offer alternatives if they are not competitive? Do you see what is happening with ARC? ARC not being competitive, means that Intel needs to bleed money to just be able to have cards on shelves. AMD can't do that. They shouldn't do that. They are not new in the business. They are decades in the business. They have to be competitive. Or else they will be having the problems they are having now. Building products and not knowing if it is logical to even market them.
AMD have more leeway to drop prices than Nvidia. In fact the prices on the 7900XT are dropping exactly because resellers have more margin on the AMD cards than on Nvidia ones. The chiplet approach allows them to have competitive prices in a recession. I think they have the right long term strategy, keep a healthy growth and healthy margins as a company. Should they spend 4X more to make something stronger that the 4090? I don't think that would be a good strategy, even if many users want it.
No they don't. Nvidia enjoys 65% profit margin, AMD around 45% profit margin. Nvidia sells 8 times more, meaning they can lower their profit margins even further and still have higher income and more profits than AMD. The price of 7900XT drops because AMD thought that RT performance was not going to be that much important today, so 7000 series development wasn't focusing on RT performance. With all marketing focusing on RT, people are rushing to buy Nvidia cards with limited VRAM instead of better performing, on raster, AMD cards with way more VRAM. The 7900XT was also priced too close to 7900XTX, an indication that AMD couldn't price it lower. Why? Maybe a miscalculation thinking that consumers will focus on raster performance only and still buy the 7900XT at $900 for the raster performance and the extra VRAM. Or maybe they didn't wanted to push Nvidia to lower MSRP prices, so they can sell 7800 and 7700 series at prices where they could make some profit. But with RT performance probably significantly worst than what the $600 RTX 4070 can offer and no Frame Generation to at least have a way to publish performance numbers that compete with Nvidia's numbers, they are now in a dead end.
A long term strategy where they will achieve sales in let's say, 18 months from now, while in the meantime Nvidia will be swimming in money, is not exactly a good strategy.