Yep. They circle, but that is the true target.
I would prefer companies, including Apple, stop baiting people into upgrading. That is, their base config is acceptable but only for “basic" users. So, yes, it is a reasonable offering. However, many of us (here) know that most users will not be feel satisfied (for long) and opt for the next tier upgrade or replace the base model for the next level far sooner than later anyway. A more visual example is the base iPhone/iPad storage capacities are a quarter of the size of the medium tier model — or high end if only two options. Why not double each model? Because, when someone is debating whether the minimum is enough, they see 4x the amount of storage featured in the model not even twice the price and realize it is a far better value (i.e. what should be the base).
Anecdotally, my most recent Mac replacement, transitioning from a 2012 Mac mini to a 2020 model, was a blatant demonstration why upgrading components to extend the life of a system is not as practical as it may seem/be. About midway through its time with me, I upgraded the 2012 Mac mini to 16GB of RAM and a 480GB SSD. All was fine except Xcode, which frequently stumbled on even essential functionality like code suggestions/autofill. Jump to M1 and the entire experience (i.e. not just Xcode) is unmistakably much smoother, feels at least thrice as fast. Now thinking, perhaps it would have been better to apply those few hundred dollars I spent on RAM and storage upgrades to an entirely new(er) Mac. Even if I would have needed to stack a couple more hundred on top, I would have also had a machine with better CPU, better GPU, and better I/O. Does that make it an absolutely better value? No, although, it’s worth a close comparison/consideration.