It's less I fail to consider their achievement, and more that I've lost faith in them. You're right, I'm not an engineer and don't know exactly how it works, but they sure as **** haven't been instilling confidence in the last few releases.
That's the difference between Steve's Apple and Timmy's Apple.
Steve's Apple was capable of truly amazing, world-changing things. Timmy's Apple, not so much.
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Perhaps integrating it under the display caused more problems than solutions: without a ring, maybe aligning fingers without explicitly looking at the screen was a hassle. Maybe, since it was under the display, fingerprints became an even larger problem. The what-ifs can extend in both directions so asking them without credible answers is pointless. It seems as though Apple found a solution that they are willing to be big on.
You say you expected a full redesign for 8 and that is what you are getting. Something that is redrawn and outside the box. You can't ask for those things then throw a tantrum when the small preview you get doesn't match what existed before.
Problem is that Apple is so slow coming to market with anything that it leaves them in a very uncomfortable position design-wise. They couldn't do the whole "thin-to-no-bezel" thing on the front of this phone without looking like an LG G6 or Galaxy S8. They had to do something different to make the phone stand out...hence the weird and extremely odd-looking cutout at the top.