Why would you stop people from spending $1000+ just to watch YouTube, if it makes them feel good while doing it? People buy all sorts of expensive goods for "feel" rather than utility, and that's totally fine. And why would you lose all that revenue/margin just for the sake of some intellectual purity? That's being financial irresponsible as a corporate manager.Nowadays many people go for the iPad Pro and use it for watching YouTube.
The iPad lineup should be organized the same way as the Apple Watch (so far the clearest and intuitive)
iPad Pro shall only take a small proportion of iPad users like the aw ultra. It is made for the people who take iPad seriously, like awu users who do all sorts of outdoor activities and sport.
iPad Air should be aimed at most users, and it should do well for studying, note taking, consuming content, everyday stuff. Still, iPad Air should be considered high end, but high-end in a different way compared to iPad Pro. This is equivalent to Apple Watch series 9, as it have the best equipments but is not built rugged.
iPad se should be the budget version, while it could do most jobs iPad Air can handle, it does not have a full laminated display, a previous generation processor, speakers, mics, camera all help bring the price down.
I would argue that, sadly as a huge iPad fan, that the iPad's best days are behind it - it's a mature product line and that's why we're seeing this "complexity" in the line-up. It's now just a matter of carving up a fixed pie to maximize margin.
The Apple Watch is still a growing product line - there's still the huge untapped Android market for example - so simplicity in lineup makes sense. You can still take huge swaths of a growing market with a simple product mix.