It makes sense.
Since the iPhone 6, iPhone prices have gone crazily high.
The 6 series (and to a certain extent, the 6s) unlocked a load of demand, simply because tens of millions of people wanted an iPhone with a bigger screen than the 5 (and below) series.
However, since then, I think for most ‘regular’ people it’s hard to justify paying so much for things like 3D Touch (lol), a nicer screen, nicer camera & nicer ID system etc.
These are all great things to have but at the price they’ve been going at, not ‘must haves’ if you’ve already got s big screen iPhone that you’re (reasonably) happy with.
So Apple making phones with features that most people want and at prices that most people will pay for, is welcome.