by the way, and for what it's worth, I did a bit more digging to refresh my memory on the C64 pricing (all US prices, I recognize that the stupid practice of keeping the figures the same for retail prices in England would make it significantly more expensive there)
when it was released in 1982, the C64 was $595 (as you say, ~$1500 today), while it's close-to-equivalent competitors were >$1200.
I had said that the price quickly was cut in half, but the reality is that by the late '80s it was readily available for ~$100 in many places in the US (it was not discontinued until 1994)
But in any case, you are correct that a computer for $35 is significantly better (especially since it is able to run a time-sharing OS effectively)
But the C64 was cheap enough to be a 'kids' computer, something that you didn't have to worry about them breaking, unlike the 'family' or 'business' computer
it's this aspect that causes people to point at the c64 when talking about the Pi