That not too different from the layout of the first Google Pixel Fold…more of a passport size/layout than current skinnier smartphones. Don’t knock it until you try it…better for reachability when both closed or open.
The iPhone Air has Face ID and it’s likely not much thicker, if at all, than Apple’s foldable. That being said, I can see Apple omitting it to save costs and pad their margins.
My Pixel 9 Pro Fold has both a fingerprint reader and facial unlock that can be used for authentication in apps and password management so it has to be within Apple’s capabilities.