I don't see why discontinuing the SE surprises anyone. I said from the start there would never be an update- when has anything named "special edition" not been a one time release?
Well, the Mac SE was updated to the Mac SE/30, for starters. Even the original Mac SE had the SuperDrive (1.44 MB floppy) added to it (replacing the DSDD 800K floppy).
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SE phones are too small and not practical for anything besides getting lost in your pocket/purse.
I got my daughter an SE, and my similarly sized iPod Touch fits wonderfully in my shirt pocket. My work issued iPhone 6s is a tight fit, and I'm a big guy.