Around the time of the 386, weren’t there a bunch of lesser options that did a bunch of similar use cases well? I’m thinking Commodores, Amigas, even a NES.
There was a huge delta between what these systems could do.
e.g. the Commodore 64 was an 8-bit 1 MHz processor vs. the 386's 32-bit 12-40MHz, could not run a full operating system, had 64 KB RAM vs. 1MB or more on the 386, etc.
In terms of raw computing capability, the 386 was a significant advance over those cheaper systems and represented capabilities that just weren't yet on the market, and those capabilities unlocked entire worlds of possible use cases and unlocked general purpose computing.
The Amiga 1000 is closer to the 386 in terms of capability, but was ~$1,600 (with a monitor) and was still significantly slower, i.e. if your use case benefited from raw processing power, there was a clear value proposition for the 386.
I'd still put this in a very different category than what is effectively an iPad with + VR/AR interface.