Typical Nvidia. Halt supply to keep the price inflated rather than lower the price to what the GPU is actually worth. The 4070 actually underperforms against last gens 3080 but is priced $100 more than the 3070. If that's not the purest example of artificial inflation...
It is obvious that Nvidia will increase the VRAM on their RTX 4070 from 12 to 16 GB in the future. This could be the explanation for the pause in card production.
In addition, the new 4060 TI will include 16 GB of VRAM. So it's only a matter of time before Nvidia increases the VRAM in the 4070 card to 16 GB or more.
The RTX 4070 might not be a hot seller. Citing supply chain sources, ITHome explains that the RTX 4070 is selling well below expectations which is why Team Green is expected to extend the current supply halt into June.