That maybe true when you go to an all Apple shop. But here in the EU there are all sorts of mobile phones laying next to each other so customers can compare them 😊
Same is true at various carrier and retail stores in the U.S. Again, people who currently have and/or have been shopping SE are more likely to stick with the lowest priced iPhone especially when they see just how much better the 16e is for only $120 more (with 128GB). They won't see a reason to spend an additional $230 more for the regular 16.
Also, I think Apple not having the very dated looking SE in the iPhone lineup is a good thing.