Base-model is 800€ in Germany. Who would pay that for a powerful phone inherently limited by screen size??? The crowd looking for small form factors are looking for phone-essentialism/minimalism. Communications, availability/battery life and camera. I would pay 500€ for that. (I wouldn't buy the SE for the bad battery life.)
I suppose there aren’t many of us that prefer smaller phones, but we’re not all chasing “phone-essentialism”.
My phone broke this weak and I had a choice of what to buy...I bought the iPhone 12 mini. I was not looking for minimalism. I'm an adult man 6'3 and I can hold an iPhone in one hand and end up really struggling to reach the top left part of the screen with my thumb. The iPhone 12 mini solves that problem. If I hadn't got the mini I would've bought the XR most likely. Phone batteries are basically good enough. Phone cameras are basically good enough. I want a phone I can use in 1 hand. I'm willing to accept I'm not a mass market.