The sole reason the 16 doesn't have a 120Hz display is to push people to the Pro model. I personally don't care much of the camera quality differences between the regular 16 and Pro models, but I do care about having a 120Hz display which my 15 Pro has. I couldn't go back to a 60Hz display. And because I like color and not having to cary a brick around, I'd like to return back to the regular iPhone in the future. I'm hoping the iPhone 18 will have 120Hz, if not, I won't upgrade.
Lots of people say you don't notice the difference between 60Hz and 120hz on an iPhone. I don't think that's true. It's very noticeable when scrolling. What I do think is true is that as long as you've never gotten used to using a smartphone with a 120Hz display, it won't bother you, because you just wouldn't have tasted 120Hz displays.
Anyway, the regular iPhones are expensive enough for this to be included, which is why I think it should be. If the iPhone 16 was selling for 700€ instead of +969, I would accept it having a 60Hz display.