It's not really as straightforward as that, because if anything's being revealed it's the true price point of Advance tickets.
It doesn't reveal so much about the "price point" of flexible tickets.
Other than that it's higher than it was, because if people will pay £120 for an Advance at a nominally "off peak" time then they'll pay at least that for a flexible ticket.
I do wonder if one possible outcome of it may be the reinstatement of the Super Off Peak Single but at a rather higher price than it was, say about £120-150. (Or a third option - Off Peak at about that, Super Off Peak at the old price, but make the latter much more restricted, a bit more like the WMT ones, i.e. having weekend restrictions on it too). I've said before that if they reduced the Anytime a bit, say to about £120, I would have much less of an issue with it - that's still a hellish rise but can be mitigated by going Advance out, flexible back - it's pretty much unknown that I don't know the intended outward train for a long trip, it's the return where flexibility is important, and I suspect I'm not the only one - indeed I suspect that applies to a very large proportion of business travellers at least.
(I'd be interested to know how many Anytime Returns from London to Manchester are sold at £350 - I suspect somewhere not above double figures per day or maybe very low three figures, with most people doing a slightly overpriced Advance out and waiting for the off peak to return).
Reminds me a bit about arguments about the Caledonian Sleeper where the decision was made to go for a higher-paying market in order to increase revenue. Well, that may have been successful but now you have a still heavily subsidised service that largely caters for the relatively well-off.
I sort of get that for the Cally, because it's a case of "make it haemorrhage less money or lose it". But there's really no prospect at all of the ECML being closed or even threatened, so this is a pure revenue grab, not an attempt to keep something that might otherwise have to be got rid of entirely.