The NeXT hardware wasn't just priced out of competition with PCs and Macs, NeXT wasn't allowed to compete head on with Apple, as part of the agreements that allowed Steve Jobs to leave Apple and start a new company. The workstation market was the only one NeXT wouldn't have to litigate their way into.
http://www.youtube.com/watch?v=uQ-G99rh0p8 - In case anyone has not seen it already, this is Steve Jobs here explaining where NeXT is competing and how it plans to compete (with, by the way, Sun).
