Correct. It's not to upset people who just bought one last year and/or don't want to upgrade. It's to please the people who didn't just buy one last year and/or do want to upgrade. Apple has acknowledged more than once that the replacement cycle has lengthened, and they've leaned into it by using more durable materials so that if you're going to keep your phone for 5 years it will be unlikely to fall apart in your hand.Apple has never banked on yearly upgrades, and the majority has never yearly upgraded. It used to be two years, now the average is closer to three.
What Apple is betting on is the second hand market continuing to thrive and good quality products continuing to grow the base. That's exactly what is happening.