There is also no evidence that most people buy the SE because of price and not size. Except that most of the reasons I have read for buying the SE here on MR, had to do with size and not price, me included.
There actually is evidence price is a big factor.
The SE got a price cut from $399 to $349 last September. That’s a major hit to Apple’s profit margin.
That significant price cut wasn’t because the SE was selling well to price-insensitive customers wanting a 4” phone. Apple was willing to give up $50 of pure profit on every unit sold in order to sell more to those to whom $50 really matters—those buying on price.
If price wasn’t a big reason customers are buying the SE, Apple could have left the price alone—and collected an extra $50 off those who would have gladly paid it to get a 4” iPhone.
Sure, some customers who buy SE do so because they want a 4” phone. But how many SE buyers would pay $649 for an iPhone 8 “minus”, or $849 for an iPhone X “minus”?
If there were sufficient demand at those price points, Apple would be glad to make a premium smaller phone. But there isn’t, so unfortunately price-insensitive customers who buy the SE only because it’s small will have to be satisfied with the features Apple can fit into the BOM of a phone that needs to be priced at $349 (or even less).
Though there probably are a few million of you who would gladly pay more to get a premium 4” phone, there simply aren’t enough of you. I sympathize with the fact your needs aren’t being met, but can’t see how the economics pencil out for a small, premium phone.