The stereotypical slashdotter is a bit overweight, lives in a basement and eats junk food all day. Probably not the Peloton target market ;-)
My wife has a Peloton - the hardware is definitely over-priced for what it is. I was disappointed that (for example) the resistance adjuster wasn't controlled by the content - so if you do one of the "trail" rides, it doesn't get harder to go up hills. Other than that though, it seems pretty solid - it's been getting a lot of use over the last couple of years, but you wouldn't know it to look at it.
I'm not much into classes generally (never went near one at the gym when I was a member), and I generally prefer to go outdoors to do my exercise, but I think the classes is where Peloton does really well. The trainers have to be "the best of the best" to get on there in the first place, and from what I've heard from owners, they do a good job of putting together classes of the sort of level people want. A friend of mine likes someone or other because they're easy to work with, but play good music, for example. My wife tells me there are a few young, hot women with big boobs, so I guess they have a following too. The do have the "drill sergeant" style classes if you're into that too.
The other area they do well in is the off-the-bike stuff. Wifey does weights, yoga and even uses the sleep aids occasionally. That all comes as part of the subscription, and has meant we've stopped a handful of other "£10/month" subscriptions we used to have.
Could we do all that she does with it more cheaply? Yes, absolutely. Just like she could use a phone much cheaper than an iPhone. Like Apple, Peloton have done a good job of bringing a load of things together and making it usable by ordinary people. Like Apple they charge a premium, and like Apple, a lot of people are quite committed to them.
I'd also say, like any successful company, there are a queue of people looking to knock them down. I don't know if it's justified in this case or not, but they seem to be doing well enough in spite of it.