The most optimistic hope is that the government mandate will force enough demand that manufacturers can enjoy some economies of scale and actually try to compete on price. I don't think this will happen anytime soon.
If you have a poorly insulated house then the fix is to insulate it, which is what a lot of people are doing around here, with very hold houses. My house is less than 60 years old and very well insulated for the time, and it holds up even today - it's always warm, with the heat pump not even close to its max power.
For instance, masonry was a common building material and that is not easy to insulate. You need to add many inches of insulation on either the outside or the inside, both of which have complications.
Even in a basic stick framed house, you’re still talking about taking down all the exterior walls, likely involving removing plaster and replacing it with drywall. Plaster has a number of nice properties, so it’s sad to remove. And that’s not to mention the price of this work.
Finally, roofs need special consideration. Most roofs today need to be properly vented, which was not as much of a consideration when the houses naturally breathed. Venting today is often done with soffit vents. Yet on historic houses, soffits are typically one of the nicer details. It’s not trivial or cheap to install venting in such cases.