Flaws? What flaws? Not everyone needs the latest and greatest or the best. Why would someone pay to upgrade something if they're not going to make use of it? Some people couldn't care less about the camera or the other bells and whistles and just want a simple smartphone. Apple knows what they are doing; they're not dumb.
By your logic, why should we stop at the iPhone 16?
We might as well pay $100 more for the 16 Plus!
Well, if we're going to get that, we might as well pay $100 more to get the 16 Pro!
Wait, the 16 Pro Max is only $200 more, we better get that instead!
Gosh, now at this point it's only $200 to get 512GB of storage!
Actually, let's drop another $200 to get 1TB of storage!
Now we're paying $1600 for a phone when the $600 one was perfectly fine.
Point is...most people buy what they need, not what looks good on paper.