Radeon 7 is a good card but i dont like the price at all. At 700 US dollar the price is not attractive at all. AMD is known for price/performance ratio products and by launching Radeon 7 at 700 US dollar they are breaking away from this tradition. I know people will say that this card offer 16 GB HBM2 memory and it is a very costly affair as compared to GDDR6 or GDDR5 but why are they going with these options as far as VRAM is considered.
Some people say that they have some sort of contract with Samsung to purchase a given amount of HBM2 memory and hence they are still using HBM2 in their products.
Either way Radeon 7 is a solid product and can be a worthy competitor to RTX 2080 if priced correctly.
I have to add one more point over here that why AMD always go with HBM2 instead of GDDR5 for their VEGA series GPU. It is because the GCN architecture powering the VEGA GPU is compatible only with HBM2 memory type. It would be a lot of work to modify GCN to be compatible with GDDR6 and GDDR5.
BTW i agree with your analysis. Radeon 7 cant compete with RTX 2080 at this price level . But dropping price would mean selling at loss for AMD which i guess they will not do.