Indeed... it is, but relatively speaking... Macintosh 128k was 2595$ in US(the quoted price for the C900 is the European price, as C900 was not initially planned to go on sale in the US).
Compare a Macintosh(128k RAM, 7 MHz 6800, no disk, lousy OS, no software) with C900(512k RAM, 10 MHz Z8001, 10 MB disk, UNIX based, thus has available software - C900 was planned to ship with an C compiler, BASIC compiler and 50ish apps built in) and I think it's actually a steal at that price.
Put that way, it does seem a bargain.

However, from what I remember of the average family living on an average wage, it was in the "business" price-range, rather than directed at the home user. The same can be said for the A1000 and it was really the arrival of the cut-down and much cheaper A500/Atari ST that brought a new generation of computing into the home.
The C900 might have been one of those computers in a magazine that we wished we had while playing Defender of the Crown on our trusty (but afordable) Amigas.