I'm not a shareholder so I don't care about Apples profits but this seems like a bad decision. The SE would cannibalize a lot of the non-Pro sales.
First of all, no one cares about the ultra wide angle sensor missing.
Secondly, no one (well, no one in their right mind) cares about lack of the 'Dynamic Island'.
From what I gather, those two features are the only things that differentiate the SE from the non-Pro models, except size on the Plus model.
And since Apple does not make bad decisions impacting their profit, this means one of two options is true if this SE, in this form, is released:
The non-Pro models will cease to exist and the SE will get a price increase
or
The non-Pro models will continue to exist and the SE will get a price increase
So regardless, it will get a price increase. I myself would never pay _double_ the price for "Pro" features, if those are only slightly better cameras, 120hz, and under-screen FaceID (vs notch). Few people would.
The magic of iPhone is iOS, the SoCs and the pretty good battery life. Not the other stuff. And Apple knows it. It won't come cheap, I believe.