There's no reason my proposed "iPhone 18 that is actually what the 18e would have been" can't start at $799. Would certainly track with a reason things are supposedly getting "worse" compared to the 17 - allows them to lower the price. Or, maybe $799 isn't doable given RAM and component prices and Apple's margins, and so they'll just deal with it until they think they can introduce an "iPhone Neo" in a few years.
I mean, it's a guess, and the people working at Apple are certainly smarter than me and I may be completely off, but in my opinion it makes a lot of rumors make sense that currently make no sense to me. And it tracks with things they've done in the past (MacBook being replaced by MacBook Air as the "default" laptop.)