Tim was not Steve's "best talent," perhaps the least compartmentalized and best of inside staff to take over. But I'd disagree that he is the smartest person at Apple. But even if he was, smart and being able to manage the brilliance of others are not linked. A lot of smart people can't manage. Not every brain surgeon has the ability to be Chief of Staff.
If this rumor becomes reality it will cement that Tim really does not understand Steve's credo of limited models to limit consumer confusion. Apple was accessible to non-techie types because they didn't burden consumers with millions of model choices. There was similar Pro and Consumer and laptop and desktop. Perhaps Steve bent his rule a bit with the Mac mini, but its a very different machine than the iMac.
Now Apple is proliferating models with different feature sets while advertising OSes with features that some of the latest hardware can't do. That's insane. Making two iPhones, same size, one with an LCD, one with OLED, again, wow! Idiotic. Make one 4.7 model and make it mind-blowing. Do the same with a 5.5. Easy buy.
To your point. It's still too crowded. A "pro" phone? C'mon. There is no "pro" use for a phone, like say, a computer, or a drill, or mixer. A "pro" line just confuses people and sounds ridiculous. Keep it simple with just one iPhone: Big, bigger, biggest. The "pro" moniker is getting out of hand. Pretty soon McDonalds will rename it's large size "pro."
Cheap model - nix it. High production cost, low profit. That's not Apple's business model, or at least wasn't. If Apple wants to start to chase marketshare at the expense of margin then all is lost with Apple innovation.