It sure sounds to me like the SE may just get a new display yet retain its classic design.
How does this help? A better display will decrease battery life, require a redesign, cut into Apples already ridiculously lower margins, and won't really offer much more to the SE customers. The only improvement I would want to see would be a higher pixel count to display more on the screen, but then the default text will be smaller which may upset others, and require Apple to support yet another custom screen dimension.
You are right. I forgot how current the SE was. It won't go to the 7 level this Spring. But I do hope they keep refreshing this form factor.
I expect Apple will refresh the SE at some point, since it appears to reflect a new strategy of offering a great iOS experience at the entry price point. I could see it getting the latest processors before it drops off the product chart, to justify the base price as the lowest priced phone in the lineup. But I also expect them to introduce an SE sized phone by next year that allows them to depreciate it and eventually replace the SE with more current technology. Given that Apple is building a plant in India to build the SE, I think that guarantees it will be around for a while longer, but I don't think Apple will just let an old phone remain static as they drop the price until it's discontinued anymore. Things like a greater RAM offering, and new colors, will allow them to keep their margins higher, even as they make minor performance upgrades. At the same time, I also expect to see Apple offer a $299 phone, and maybe even a $199 phone, something the SE could easily become while still being a relevant iOS experience.