I know a few people that still have the SE, and for all of them it was mainly about the size. That and a belief that they didn't want to be glued to their phone all the time. So the benefit was a combination of the smaller size being more ergonomic, plus the fact that less content fit on the screen was actually a pro for them because the extra friction encourages wasting less time on it.

It does seem weird that instead of continuing to serve this market, Apple assumes everyone wants their same large form factor and it's only a matter of price.

On the other hand, maybe we're just in a bubble. Trying to avoid consumer tech even though you could easily afford it is a rather niche, privileged view of a subset of people that work in tech. Maybe outside this bubble there's a much larger group of people who do want the big, more up to date designs and price is the only consideration.