It’s a very good point you make about the regular iPhone, as it’s feeling squeezed more than ever - if the iPhone air rumours are to be believed.Depends 100% on user needs. In my opinion Apple should ditch the standard iPhone models, rename the Pro model (which sounds lame anyway) to simply iPhone and make it slightly cheaper, as well as the new 16e a little cheaper. Perhaps they could slot the rumoured slim & fashiony iPhone in between the E and the Pro. That would be a better line up than trying to sell an overpriced pro, a standard iPhone that is currently hobbled features wise, and the far overpriced E. As for me, I am solo building contractor and find the iPhone Pro a rock solid device - it’s an indispensable part of my toolkit (durable, great battery life, great cameras and a bright high quality display). Currently running a standard size pro but will be going up to pro max when the 17 is released. Can’t be bothered lugging around the MacBook which now just gets used for invoicing and accounting, so I really like using a big grunty phone as it does a lot. My wife is about to replace her iPhone SE2 and I keep saying just buy an IP Pro as she keeps borrowing mine to take photos and I know she will be underwhelmed with an E or a standard iPhone.
This year the air seems to be down to replace the plus, but potentially next year it could replace the regular iPhone (or become it).
That will leave room for the iPhone 17e/18e (whatever the next model will be) to get the Dynamic Island and keep its current chassis size.
Depending on the specs and price it may be that this iPhone air - literally or effectively - replaces the regular pro too.
And for fans of the pro max like you, it leaves room for that model to go fully ultra and get closer to a starting price of $1500 than not.