I think it was unfortunately priced so high because it was an
incredibly expensive 'experience' to run.
Firstly the sheer number of cast members required - around 15 characters and then operational cast members too (admin, transport, F&B/dining, housekeeping). There were also a 'B' round of cast members in case of sickness and to cover rotations (remember each cast member had to work for the full 3 day experience too!).
Plus then most of the character positions were 'highly skilled' performers who commanded higher wages, and took a long time to train and upskill. They lost a few of the main characters after the first couple of months as cast members realised it wasn't for them too.
And then the fact there was only 100 rooms which if they wanted to expand would either massively dilute the experience or require more cast members... Disney just couldn't make it profitable, cheap and successfull at all.
I've thought for some time that it was inevitable it was going to be wildly changed or maybe even closed. I expected them to tweak and play with the format a lot more to try and see if there was a winning combination, but I can see why they have not too, as I think anything would be a massive compromise to the experience which Disney just won't do for fear of tarnishing the brand - even Disney admitted that the experience had the absolute
highest guest feedback ratings and scores across the whole of the WDW resort!
However, with declining numbers at the Starcruiser hotel recently (even cancelling some dates due to lack of bookings!), and people cutting back on spending and businesses generally suffering as a result, as well as an absolute collapse in guest numbers booking for WDW since the 50th anniversary ended (yeah I have no idea why people have stopped going since the 50th ended either!), I think Disney are trying to shore up and stem their losses quickly, and no doubt even drum up a bit of final demand for it with people knowing its going away for good.
It does feel like the whole thing has been a giant (and expensive) experiment however, from how much people would pay to the whole immersive 'storyline in a stay' concept, and all of the operational requirements too - I suspect they have gathered a lot of data about it and whilst they might not build something as the same concept again, it will likely lead to other greater experiences.
Bit gutted I never got to try it given it was such a unique experience, but equally it was well out of my price range too