Apple’s actions (which are still just shady rumors at best, mind you) do no such thing. What it tells me, if true, is that Apple are totally fine fracturing the product line-up into oblivion (again), which is confusing for consumers, and has to be somewhat of a PITA for software developers, too.
For the record, I’ve owned “plus” models (always with an Apple logo, natch) since they came out, and they are just downright lovable. But the point all along, at least in terms of my posts in this thread, has been that Apple could make TWO sizes of phone, regardless of LCD vs. OLED, and regardless of mainstream vs. bleeding edge. If the entire line refreshes in the fall, why not be simple about it? Why make THREE different sizes and resolutions? Make the cheap phone a phablet, I really don’t care - but make it the same phablet screen format as the fancy phone. It’s not complicated. At least, it shouldn’t be.