The majority of the market hasn't spoken. A consumer cannot buy something that isn't offered. In order to draw a conclusion that the majority of the market wants phablets, Apple would have had to offer two iPhones identical in all ways except for screen size. They didn't. Although I was delighted with my SE, most here couldn't get past the fact that (A) it used an older chassis and (B) didn't have the latest and greatest internals.
THIS!!! It's not a problem with the Xs or Xs Max since they essentially have the same camera but I know so many people who have a 7 Plus or 8 Plus who actually wanted a 7 or 8 but made the decision to purchase the larger phone in order to have 2X zoom and portrait mode, myself included.
Yes, I know I could have gotten an X but I was hesitant about Face ID, the notch, and an all new design. This was my decision so no need for everyone who loves their X to come out and bash me saying Face ID is far superior and the notch is not even noticeable.
If Apple offered the dual lens camera on both sized phones in the 7 or 8 series, I truly believe that the perceived demand for phablets would dramatically decrease. Although to be fair, it seems the Xs Max has been outselling the Xs but I believe that is because people who wanted the largest phone with Face ID rushed out and bought it while people haven't seen a huge reason to upgrade to the Xs.
Now if Apple released a phone the size of an SE with 2X zoom and portrait mode, I would purchased it immediately. Ideally, all I want/need from my phone is for it to be easily carried around, the ability to check emails, messages, social media, and to take good pictures.
If I want to watch videos or do anything else that requires a larger screen, I'll use an iPad or laptop. That being said, since I compromised and went with the larger phone, I decided not to replace my aging iPad at the same time. If a smaller phone had the features I wanted, I would have bought that and a new iPad.