They had the opportunity with RDNA 2 and they had their cards priced $50 cheaper than Nvidia's but with missing features. Not to mention that AMD's MSRP was a joke, they wanted to stop producing reference cards for a reason, they did not want to sell at those prices and the AIBs, for the same cooler solution as Ampere, were sometimes +$100-$150.
I'm not even sure they would be ready to ramp up to supply an increased demand in the likes that Nvidia sees. The 3090 alone sold more than the entire 6000 series.
Say, AMD thinks they have a winner on their hands and somehow an attractive pricing. To ramp up production to compete, which requires to be ready on launch day as ramping up takes time and it would already be the next generation, they would be at risk of having millions of cards not being sold since competition can always change price too.
I really doubt we would have an AMD "nice guy" moment having a competitive card for >$100 less. Zen was a desperate move, like on the brink of bankruptcy move, a do or die situation. GPUs don't seem to be their core business and seem fine getting 1-2% of the userbase..