An iPhone 17e won’t be competing with a Macbook though, whereas an iPad might be (as people weigh up the iPad + keyboard cost and the merits of each option if they can only afford one device.)
There is always a performance gap but I feel Apple manages it with the tiers it offers; the Neo looks better value for money for as long as the base iPad only has 6GB - as does the 8GB iPad mini - which is probably why the 12th Gen is yet to launch. The Mini often goes years without an update, but the base iPad is not allowed to catch up to its processor generation before it gets an update, as Apple position it closer to the Air with the laminated display, true tone and more advanced pencil. Granted the base tier isn’t as clear with Neo and iPad, but regular buyers know what Air and Pro mean by now.
The 8GB RAM is going to become an issue for Mac OS before iPad OS surely, so I can’t see this 1st Gen having a long lifecycle. New products seem to have a habit of being deliberately handicapped, leading to an incentive to wait for what it should have been. Or you pay the premium; OLED iPad Pro M4 only came with 8GB RAM unless it was a 1TB or 2TB version, now 12GB base.