Statement of Bias: Pinephone (bravehart version) and PineTab owner. Pleased with both, but not using pinephone yet.
There are reasons for the price differences, and there are very good reasons for both approaches.
The Librem phone is the product of a for-profit company. They have a strong incentive to build a "finished" and functional product with working hardware and fullly integrated software (maybe evertyhing doesn't work now, but as long as there is a product to sell, they will be working to get there). I think the rule of thumb is that a reasonable final price for a product is something like 4x the cost of the bill of materials; I don't think this includes software-related costs. For a higher cost, you get a finished product out of the box with one point of contact for support. This is the tried-and-true model where the manufacturer stands behind the product. The difference here is that normally the producer tries to tightly control the software stack (if only to minimize support costs), but Puri.sm doesn't try to control the software.
IIRC, Pine64 is a non-profit (not sure how that works) that designs and releases the hardware for not much more than the cost of production/storage/shipping (most salaries can easily be put under those expenses, so you can still have a non-profit structure). Software support is minimal, the community is expected to actually make the product into something as it sees fit. As shipped, the original pinephone version just booted into a self-test mode. The rest was up to the user to set up, with multiple environments to choose from (none of which could even reliably make a call when the "braveheart" pre-release version was shipped). This model has the advantages of getting low-cost hardware out to as many people as possible to foster innovation, but you end up with a fragmented user base. My phone's speaker isn't working... it is the hardware, or just the version of postmarketOS I'm running?. There is no one-person I can ask, its going to take a while to troubleshoot. On the other hand, I have lots of different groups with lots of different ideas of how to make a phone work. Natural Selection may eventually weed out some of them, or I may choose to a niche system that exists along with other oddballs on some galapagos island of the internet. This is a lot like the "white box" PC world that led to the flourishing of Linux in the first place. I think the future of linux-based phone environments will come more from this approach than the other, but it will be a longer, slower, and more "painful" route.
Both approaches are Good and Right.