I'd say the bungalow is also overpriced, but it's a location that would appeal to most people. The only thing that keeps people out is the price, not a certain aspect of the experience that they're not into.
With the Star Wars hotel they're banking that there are enough people who are bungalow-level rich AND Star Wars fans to keep the place a going concern. THEN they have to provide a level of entertainment that will get positive word of mouth from those fans, which is no guarantee. They're going to have to keep the tech functioning at all times and provide actual acting talent (no dressing up the cashiers).
The bungalow, on the other hand, basically needs to be maintained.
I think that 1. the pool of "nerd money" that Disney was trying to tap with this hotel has drastically shrunk with COVID and will continue to shrink and 2. the remaining customers have lots of options for entertainment and may not be satisfied with the experience that Disney is currently able to provide. It's not a total disaster, they can always just have a Star Wars themed hotel at a normal (for Disney) price, but the current concept isn't going to work.