The fact that they introduced it at a fair price is admitting a couple things, they were not out to be better than some of the other offerings. And they know folks may be scared to buy a first offering by a non-drone OEM in the past.
So that being said, they are out to grab any of the fence sitters that wanted a drone, but may not have done so. For all those GoPro4 and GoPro5 owners, this is the logical solution as it gives them, the drone, case, gimbal/handle for $799. Heck a handheld gimbal alone is $350-$500. For those without the GoPro, the upgrade price with Session 5 or Hero 5 Black is still shaves $100 off the price of the camera.
For those that have not used a handheld gimbal, it is an amazing tool. And GoPro designed their gimbal to be used with the Gopro mounts so that it can be converted to a wearable gimbal as well. This gives a person the steady shot while backpack or helmet mounted. It's an amazing deal.
So as said, it won't crush the competition already out there, but it will gather market share quickly for those that have yet to purchase. It's a name they know, and it offers very cool things like the handheld gimbal that many have not justified purchasing in the past.
On a similar note, Hero 5 black with voice control is super sweet. Not much for spec changes over the Hero 4 black, but enough to get people to drop cash. And at $399, they will sell like crazy. As I had mentioned in the bargains thread, I just replaced my Hero 3+Black with a new Hero 4 Black at Sams club. Bundled with 2 batteries, external charger, SD card, floaty stick and floaty back door for $379 was an amazing price (before yesterday) I'm happy as it fits in my Zenmuse Gimbal, so let the 1080/120fps and 4k madness begin!!!