A) Many, many folks already choose to buy "worse iPhone than a Pro or Pro Max."1. It won't have Face ID.
2. It won't have multiple cameras.
3. It will have a short and fat aspect ratio.
In no way will it be a Pro iPhone. It does not compare. It will be a worse iPhone than a Pro or Pro Max. You're supposed to be OK with that, for the privilege of unfolding it into the worst iPad.
B) Same with the tablet function. My guess is that there are many buyers who will consider a small folding tablet to be a useful device, not a "worst iPad."
We will see.