For what it's worth: All ballistic missiles are hypersonic. They've fit into shipping containers for yonks; Iran publicly launched some from a container back in 2024. Some of them have some limited maneuverability at the terminal phase to improve targeting / defeat defense. It looks like this one does.
I mean the real answer is that Lockheed Martin's missiles are for a different purpose than these are. The US cares (well cared, at least; God knows how much the current leadership cares) very very much about reliability and accuracy, because our goals have been to hit small, tactically important targets while avoiding civilians. Hitting a school full of kids is bad, actually! Like, really, really bad! We try very hard not to do that! So we pay $3.5M for a Precision Strike Missile or $1.7M for an ATACMS, because they can accurately, reliably hit a targeted building from hundreds of km away. Paying less for the missile also doesn't help you as much as you might hope; getting good intelligence and targeting data (again: hitting schools is bad) is also fantastically expensive.
Accuracy and reliability may not be the primary goals for a $100k missile. If this weapon is intended, instead, to provide a credible deterrent, you don't need accuracy or reliability. You need numbers large enough to make defending against the missiles impractical, and make the cost of fighting intolerable to potential adversaries. You also can't defend with cheap interceptors. Incoming missiles can be (almost) anywhere in 3D space. Defenses need to detect, acquire, and intercept targets with incredible precision on ridiculously short time scales.
And while $100k is cheap, it's not _that_ cheap -- retail for a Scud might be $500k-$1M. Cutting production cost by a factor of ten isn't so unreasonable with a ground-up design and modern materials and tooling.
I am also not at all convinced that this missile, in actual practice, will be particularly inaccurate or unreliable. Chinese companies are extremely good at mass-producing precision devices out of challenging materials at absurdly low cost. Time will tell, unfortunately.
The USG and allies have traditionally been very willing to pay top dollar for missiles. Lockheed has no reason at all to make a cheaper variant of the PSM; we're happy to pay the full rate. For many reasons, I do think the US should develop the capability to build precision stuff in larger quantity at lower cost. The military isn't likely to drive that, though.
But: We're never going to try to acquire the cheapest possible means to deliver bombs to general areas. There just aren't many (any?) situations where the ability to blanket an adversary's city with missiles actually helps us achieve our goals.
Anyhow, I am hopeful that maybe, someday, folk will decide that missile defense is a fool's game and that maybe leaning on diplomacy a bit harder is more effective at solving conflicts.