Launching a “premium” version of an existing product at the same price as the existing model doesn’t make much sense. It would force Nintendo to drop the price on the standard Switch, which would then put pressure on the perceived value of the Switch Lite.
In the most basic sense, the OLED model is the equivalent of a X1X or PS4 Pro without the internal enhancements. In Nintendo terms, it’s the equivalent of the DSi … which didn’t really offer much over the DS.
I would have preferred a Pro model of the Switch, but I’m considering picking up an OLED because prices on the original Switch (hackable) are high enough to offset a significant portion of the upgrade cost. With that said, $300 would have been nice but it completely makes sense to me why this model is $50 more. If this had been branded as the replacement for the original Switch, then $300 would have made sense. But this is a premium product aimed at older gamers and people with enough spending power that an extra $50 probably won’t faze them.