It makes no sense because phones currently in the lineup cheaper than this rumored phone have Taptic Engine and 3D Touch. Nothing about this device makes any sense. Of course analysts got hardly anything right about the 5C. My guess is this situation is similar. Here a rumor about some bigger screen cheaper priced phone and start speculating on what Apple could do to make it cheaper and turn that into a rumor.
Not sure why you're comparing Ming-Chi Kuo to other analysts when he's the world's most accurate Apple analyst.
This 6.1" phone will have Taptic Engine but no 3D Touch.
3D Touch has long been known to be an expensive feature and one of the reasons why Samsung hasn't implemented it. This 6.1" device is a mainstream phone using a brand new thin-bezel Full Active LCD panel from JDI. It makes sense Apple doesn't want complexity during the assembly process.