I think otherwise. Ryzen 1700 is cannibalizing AMD itself. IMO they should release the 1700X as 1700 and sell it for minimum 400USD and the actual 1700 shouldn't even exist. I bet it wouldn't hurt their sales. The one who wanted to buy ryzen would buy it even for 400 USD without problems.
I'm pretty sure AMD did their market research. If they thought they could get away with what you propose I'm sure they'd done it. They're not
that clueless.
The way I see it the issues are first that we don't really know if there's a difference in quality between the 1700 and 1700x chips we buy. Suppose they're all tested, and the 1700 chips tend to do less well at higher frequencies as far as power consumption goes. It could be entirely reasonable for AMD to then rebrand those as lower powered lower speed 1700 chips, and keep the ones that can run a higher default frequency at lower power draw 1700x. In other words do we really know they're all "the same"? From what unscientific impression it seems that the 1700 chips aren't overclocking as high with the same power consumption as the "x" chips.
Secondly, not everyone wants to tinker with OC. So, there might be a case to make for making a tier of chips that run at different speeds by default, and by default then charging different amounts, regardless of the previous possible issue.
Lastly, you could look at it from a different perspective; instead of the 1700 being underpriced for what it is perhaps it's the "x" chips that are
overpriced. Perhaps AMD did their research and found out that most people would totally consider buying a 1700 for X dollars, and that some people then would happily pay more for an "x" chip even though that was a less good deal. And in turn they might have found that people actually would
not buy as many chips if the pricing was as you suggested
as a whole, and that they'd lose revenue that way.