Last year's SE is nice but I won't pay full price for last year's techI'm sure there are plenty of people who like the phablet sizes. The sales seem to bear that out. However my iPhone 6 is my last iPhone until they update the 4" iPhone. Last year's SE is nice but I won't pay full price for last year's tech. I think people underestimate the appeal and need for the 4" phone.
Sure, they're rarer nowadays as companies are searching for a higher average selling price. But I think, and sales of the SE bear this out, that there is plenty of market for the smaller form factor. Just don't make it crippled in functionality.
SE has iPhone 6 hardware (for the most part), and it is cheaper than 6, cheapest iPhone.