Well, remember that US$429 got you a 64 GB phone and the 16e has 128 GB on the base model. I paid an extra US$150 up front to get the 256 GB version of the 2022 iPhone SE but the 16e requires US$99.99.It's definitely an expectation issue. But that doesn't mean it's wrong. The iPhone SE was $399, and only recently bumped to $429. They replaced it with a $599 phone. Considering what the 16e consists of, it is pretty well priced alongside the 16. But that does nothing for the iPhone customers who only bought an iPhone because $399 was something they could stomach. My in-laws have 6 year old iPhones SE hanging on by a thread, and probably won't upgrade now because the replacement model is so much more expensive.
Yes, it's a bit of a shock but when was the last time you shopped in a store since the end of 2020?
I ended up buying the iPhone 15 with 256 GB because it was less of an experiment. My 2022 iPhone SE was warning me that the battery needed replacement. Apparently, the iPhone 16e is quite good. I just wasn't ready.