The price gap is significant, but there isn't really a plausible mid-point in between the two in terms of technology. Also remember that any completely separate product line they release needs to have a market big enough to sustain it - if it is positioned such that most people would either just spend a bit more for the
M3, or save $500 and get the
Air 2S, that isn't good for them either. I'm sure they have done the necessary market research. It's also possible that they are banking on the
M3 being more expensive causing an increase in
Air 2S sales - win/win for DJI.
A large sensor drone with good 8K frame rates and a 10X optical zoom would probably be priced well above the
M3 and the gimbal would have be massive due to the 10X optical zoom lens. Those specs on a tiny sensor drone would be mostly wasted, and a tiny sensor with enough resolution for 8K (roughly 33MP) would have horrible image quality as the pixel size would be unbelievably small. Everything in the photo/video world is a compromise of some kind.
They could simply make the price of the
Air 2S higher and their lineup pricing would be more linear, but then people would be upset about that too haha. They could have the
Air 2 (1/2" sensor) at $999,
Air 2S (1" sensor) $1499,
M3 $2049 (4/3 sensor). I'm actually surprised they don't do that and just discontinue the
M2P, but it's hard to complain about an
Air2S for $999 - almost the same price as the
original Mavic Air with the tiny 1/2.3" sensor.