This is normal.
The price increase would not have been mild - at the time this was written, it was the cost of a full game. When most only own a handful of games that's a significant difference.
Tells us something about the real price of that console, though. People don't see the price of the walled garden, since (i) it's always been this way, and (ii) it looks like the garden is providing flowers (in the form of a store). Such hidden (or externalised) costs are a bit of a lie. I'd rather be aware of the true price of what I'm buying.
The only thing non-exclusive stores can't do is protect people from themselves. And even then you could still have the kid gloves on by default, yet let people take them off whenever they want. For instance by displaying some mildly scary warning about some program not being verified by the OS vendor, and then still let people click on the "install anyway" button. (The "Windows protected your PC" popup would be like that, though I think it overshoots to the point of dishonesty.)
[1] https://www.digitaltrends.com/gaming/steam-game-allegedly-mi...
I'm a PC Gamer myself, but I also stopped playing anything ranked. There's no point.
[1] https://www.cnet.com/news/sony-still-losing-on-every-playsta...