Here's a better idea. Instead of having programmers spending countless hours trimming the OS down 25%, do the common sense thing and make the lowest end unit come with 32, then 64, then 128.
I can't believe a 8/16 GB iPhones are still sold.
Here's a better idea - issue a release that benefits the people who already own phones, rather than one that benefits only the purchasers of new phones.
The only way Apple can retroactively "increase" RAM and boost CPU performance for existing owners is to spend "countless hours" improving software. If iPhone users are happy as clams, then the next phone is far more likely to be an iPhone.
I know, different people have different priorities, but I'm amused by this comment when contrasted to the amount of dissatisfaction with Apple OSes and software I see expressed in other threads, "Oh, Apple's hardware is great, but the software ain't what it used to be."
As to bumping up RAM on the cheapest model? Folks tend to forget that the cell providers who sell subsidized phones have a big say in this. They still need $0/$49/$99 phones to lure the remaining flip phone users, and the carriers don't want to pay Apple a penny more if they can manage it. If the cost of flash goes down, the savings will be spent on something other than additional flash. What do you think is going to get more customers through the doors in the next year or two, "more flash for the same price," or Touch ID/Apple Pay?