Right on top of the app switcher? No thanks! I'd be switching apps when I mean to hit space. Or exiting out. I can totally see why it's not sitting on the bottom. Looks weird for sure. But I don't think the alternative would be a good solution. Also, I'd think typing that far down would be odd. We're not used to typing at the bottom of the screen (don't forget the giant bezel on non X phones).
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1. Just because you don't see a lot of changes does NOT mean there aren't a lot of changes. It's just code you can't see. For all we know, there may be tons of changes. There most likely is.
2. There are no naming rules. 12.0 is just as valid as 11.5 which is just as valid as 1227.543.75423. The numbers are basically meaningless.
3. It's a new year, we get the major number bumped. Just like every other year when a new iOS is introduced.
Honestly, I don't understand these "it should be 11.5" arguments. If next year has a more changes than a typical year, would you be arguing that it should be called iOS 14? No, because Apple doesn't use major version numbers as an indicator of how big the update is. It would just be "feature loaded".