On my side, I cannot fathom gifting Tim and company $1,000+, for a freaking iPhone -- any phone.
And, definitely, it is not like I could not afford it.
But it is just over the top for what amounts an add-on, portable device for my use case. (My iPhone is not my only computer device, like with others in this thread.)
I am entirely happy with my iPhone SE. It serves its purpose exceedingly well. And I bought it unlocked, cash and carry -- no freaking monthly payments that hide its true cost.
If i would want to spend this kind of money, I would certainly do it for an iPad Pro 10.5 (future second generation), and replace my iPad Mini 4 which complements my MacBook Pro for consumption purposes.
But that is just me. To each its own.