Everyone complaining here are the market. Apple has clearly decided to not offer an up-to-date sub-5 inch phone, but that doesn't mean there isn't a market for it. It might just be a small one that Apple, with its drive for huge margins on limited numbers of options, just doesn't want to go after. In fact, they probably don't want to offer such a phone for fear of eating into higher margined phones.
I've been on the iPhone 5c since it was brand new. I've replaced the screen, the battery and now finally the home button is busted with no easy repair. I'm sad to see this size go. I'd happily pay maybe 600 bucks or so for an iPhone Xr mini or some such thing. But I'm not jumping up to a 6.1 inch phablet, and the $1000 price tag on the still kinda large size Xs is hard to swallow. My wife has the 7 and that works out fine for me, but is probably the largest size I'd go to. The issue with that is going down to the 8 is a) still not cheap and b) behind on the tech. Somehow I have to do something though, I've been living with this busted home button for around a month waiting for this event. I read the rumors, I new a size and price I was really wanting was unlikely, but here we are. Maybe I'll hit up a used iPhone 7 and cross my fingers a more modest sized edge-to-edge phone (an SE 2?) is in Apple's near future.