For Gods sake bring back a 27 inch model.
I guess that 5k@27" display panels - which only Apple uses - have just become too expensive to bundle with $1800 iMacs. I don't think "loss leader" is the right term - Apple doesn't do the "l" word - more like "reduced profit-margin-leader", but getting that display for that price was always absurd value for money by Apple standards.
If you look to the high-end iMacs and iMac Pro - by the time you added 32GB or 64GB RAM they cost as much, if not more than a Mac Studio/Studio Display combo (if you consider the Studio Max as comparable to the best iMac and Studio Ultra to the 18-core iMac Pro).
A new high-end iMac/iMac Pro probably wouldn't be viable alongside the Studio. The "hole" is where the sub-$2500 iMacs used to be - but then there
is the 24" iMac which has a larger, better screen than the old 21.5"
and a more capable processor, which will take up some of the former low-end 27" iMac sales.
Also, yes, the current iMac Display is 5 years old and still beats any display that has a price instead of a phone number. The Studio Display is, at best, only a minor improvement. Which is good - but, as they say, "Past performance does not guarantee future results" - especially with mini LED, micro LED, 8k and other technologies in the pipeline. Buying an iMac always carried the risk that the computer would be obsolete before the display - today, buying an iMac that didn't have some sort of next-generation display technology would also carry the risk that the display would be obsolete before the computer. Also, while 5k is
the best that doesn't mean that 4k can't be very good and there is a lot more choice of screen sizes & formats with third-party displays.
Every movie or tv show that takes place in an office has one on the workers desk.
...usually because Apple paid the producers to use them.
Look forward to future TV shows having Studio Displays or Pro XDR Displays on desktops that
magically work without a computer connected. Just think of it as the tech equivalent of the sort of New York apartments that waitresses in 1990s sitcoms could apparently afford....