I don't know why OP is surprised. It depends on your disposable income. Mn had a diverse posting posting population of those struggling, to those on very high salaries, and the rest of us in between.
Depends on your priorities. We have a caravan in Dorset. We would normally go often. If I plan it right, because I work part time, out bank holiday week may be a good week to 10 days, only using 3 or 3 days holiday.
I also go away with the girls for long weekends to European city. Cost low, one days holiday. Easy. I plan to book again for October.
I'm not surprised that so many people are booking. I'm more surprised at the MN distain and anxiety.
I Don't see the Indian variant as that big a deal, we will get over it, we will continue, we will have other variants this year no doubt. and life needs to start to get back to a bit more normal, we need to start opening up things, businesses trying to recover and holidays booked.
I see that people will go abroad if they can to green places for their summer holidays and there may be tightening of restrictions in the autumn, but I see all this as totally fine. I'm not panicked by it, I don't worry about it. I just see this is all totally normal in the current circumstances.