I actually had a 5K iMac that I sold when I got the Mac mini. As I was deciding on the display I looked at doing that, but I wasn't super keen on the unfinished look. And IIRC it was going to cost about $250 in parts at the time. I was able to get the ASUS for about $700 and sell the iMac for ~$300. So it was really only about $150 more to not DIY it and have a more finished final package.
It is a really neat looking project, I just determined it wasn't for me.
It has gotten a bit cheaper, a lot easier and somewhat better lately.
But I agree that it does not make that much sense because you end up with a product that has many flaws and is a bit annoying to use.
The main factor is being able to sell the iMac for that relatively high price. I can't figure out why they are still so expensive because most of the early 5K models are kind of useless nowadays (on low end version, the compute just cannot cope with modern media/files at such a resolution). But maybe it's people converting them to display driving the market...
The person who bought mine was a family friend who wanted a large display for her kid to do 3D printing stuff. Since he was just going to be running a slicer and some basic modeling stuff, it seemed perfect. I got a bit of cash, he got a computer with a good display, and it was a general win all around.
Ah yes for those use cases it makes perfect sense.
Apple excuse for stopping the big iMacs was that when you bundle up the display with the compute it makes it hard to upgrade and the whole thing become useless.
But in reality it just looks like some bad "reasoning" to force people to spend more on a less elegant solution that probably won't get upgraded that much.
At least an old school 5K iMac can have some secondary use case, like you demonstrated or even just to watch movies, do some light document editing and such.
And you can convert them to displays if you really want, but that should have been a built-in functionnality in the first place.
I guess this is why they still commend a relatively high-price, a good large display still has many uses even if the compute is weak.
The studio display is kinda useless outside of Mac use, so even though it's great quality its really not a good deal.
I really hope Apple finally release another big iMac because I won't get another Mac Mini or a Mac Studio. I like macOS (less so nowadays) but the whole point of the Mac was the integrated hardware for base/mid-range power. Their small desktop boxes that cannot take any upgrades are really pointless as a desktop because you end up with cable galore and not much space saved. This is so stupidly inelegant, I can feel Jobs rolling in his grave.
They added front accessible ports, so that's something I guess, but come on, they stink of greed and profit maximisation at all costs...