I'm not that shocked or surprised. You want a premium device with all the latest toys, you have to pay the price. Most carriers are not really subsidizing like they used to be.
But here's the thing. No one is MAKING you buy the top of the line most expensive Apple phone they make. There are many other cheaper choices out there.
And here's the other thing. For me I have always had success selling my old phone for at least half of what I paid for it. So while $999 or so may sound like a lot, I suspect I can sell my old iPhone for $400-$500 fairly easily, which is close to half of what the new one will cost.
For the last few years, I have made out pretty good selling an older model of phone or tablet to fund a new one. Apple has done a great job of making products that do okay on the used market.
If, like me, you buy the latest and greatest iPhone every year, your net cost to do this isn't as terrible as you might think. And since I use my phone all the time because of the nature of my job and extensive travel, it is worth it to me to have the best phone with the best camera at all times.