That would be nice, but they'd get caught with their pants down if the demand suddenly collapses. The opposite would happen, where the excess supply would drive the prices down below where sales are profitable, or they'd be stuck with a lot of inventory they paid to make, but can't move at MSRP.

It's a bad situation all around. Their current tack is probably the best one, though I'd make limiting quantities sold per buyer more than just a suggestion. Most gamers want Nvidia, so the company has the power to dictate terms to its partners and vendors.

"Surely this has been enough time to at least start meeting the increased demand, no?"

what makes it "Surely"?
nvidia isn't the only customer and smartphones chips don't keep enough a room for others
even RAM prices increase is caused by the high demand on RAM for smartphones
because FABs decided to decrease the production of PC DRAMs to increase the production of smartphones DRAMs

the problem is the drop of cryptocurrency is expected. analyst predict the hype will fall and and the price will be 'normalised' sometime in the next 6 months. by that time, the market will be flooded with used GPU, enough to supply the market for more than a year (remember most crypto-miner use multiple GPUS). their sales will hit rock bottom by that time. However, the current price of GPU is extremely high due to massive demand. But not because of NVIDIA, but because of retailers. NVIDIA has 0 control on the price. So the profit goes to retailers instead of them.