It's rumored that iPad Pro M3 will see price hikes of $500-$700 to cover OLED screens and higher base memory/storage [1]. If Magic Keyboard gains an aluminum shell in MacBook style [2], iPad Pro M3 could move upmarket to MacBook Pro pricing. A 12.9" iPad Air could occupy the lower price tier [3].
If iPad Pro M3 can earn same-or-better margins/revenue as MacBook+iPad, with less physical hardware thanks to virtualization, why not save on atoms and shipping? iPad Pro has long been overpowered for the few iOS-approved use cases. Virtualization could unlock that power, freeing customers from carrying multiple devices to run multiple OSes.
[1] https://www.tomsguide.com/news/ipad-pro-2024
[2] https://www.theverge.com/2023/9/3/23857409/ipad-aluminum-magic-keyboard-apple-ipad-pro
[3] https://www.imore.com/ipad/ipad-air/129-inch-ipad-air-on-track-for-march-launch-as-display-panel-shipments-begin