Are they compromising though? At all? I can't see it.
They have added more convenient USBC port. They have vastly updated the shell to be more inline with modern iPad design, no bezels, new colours etc. They have revamped and moved the camera to a better position. Touch ID built into the side/top button. They have even made a special keyboard attachment for it.
It's not compromised save a couple of extremely minor things, a slow data transfer rate - which is really not the target buyers main concern (and hasn't been downgraded from the previous model either), and they have made it so its compatible with pencil 1, and again - the target buyer is just as likely a first time buyer as they are a base model upgrader. The upgrader doesn't need a new pencil. The first time buyer gets a cheaper pencil option.
Talk about blowing everything out of proportion. And you're supposed to be logical.