Offering a product segment with various specs and price points has not been unusual for Apple. Look at the range of Apple computers going back to the 1980s and 90s with the various Apple II and III models, Lisa/Lisa 2, Macintosh models, etc.
The early phones were primarily focused on software, storage and connectivity but as things like camera capabilities improved and became more important (at least to some), it was more logical to offer different phone tiers to give customers more options instead of a one size fits all approach.
I think Apple has simply been doing what the smartphone industry has been doing. $999 USD for a feature rich iPhone 14 Pro for those who want it is not a bad price IMO. It's the same price as the iPhone X was five years ago which had half the starting storage and less features. For those who don't need the bells and whistles or don't want to spend that much, there are still the regular iPhone 14 and SE models. A little something for everyone.