Why wouldn't they go down this path? The annual fee is $450 (rising to $550) and they have the demographic and spend information of those who have this card. This is exactly the card that they should be using to grow their wealthier clientele base -- they have other cards focused on other areas of the market and continue to enhance those cards (same as AMEX). Plus given the overall economic conditions, it's safer for them to retain a wealthier clientele that can pay their bills vs. a clientele that has a higher risk of default. They've publicly stated that they lost $350MM+ on this card and that it was effectively a loss-leader (driving growth in other segments like home and auto loans). If it's going to continue to be a loss leader, you need it to have a clientele that continues to grow those home, auto loan, wealth management, etc., businesses and that clientele is always going to skew wealthier.

I would agree with your sentiment if they put this on the Freedom Flex card but it makes perfect sense on flagship high fee card.

Plus as noted above, there is no $2000 investment to use this credit. The digital membership is $13.99/month and you just stream it and can use on exercise equipment you already own (or at the gym, or cheaper equipment that you acquire), you can use the Yoga classes without any equipment, you can use the strength classes with just some weights, and you can do the run classes outside (even if instructor teaches from a treadmill). Seems like all upside with this offer even if you have no interest in buying the bike or treadmill.