Apple throughout its history has always made devices with upgraded internals within the same form factor.People used to say the SE was for people who wanted a small phone. It has never been about being small, or having a home button. It has always been a cost oriented device based on last generation tech mixed with current generation tech.
With that said there were many people who preferred the SE because it had a physical button if they got lost. You also had a segment of the population that liked smaller phones and of course you also had the price conscious people who just wanted the cheapest "new" iPhone they could get.