Switching from one to the other is a PITA. What if that was seamless. You just pick one up and now everything is there. You might have a phone for work, going out, hiking, etc. You might have phones matching different iphones. Apple could be selling you many phones. Losing a phone would be a lot less dramatic because you'd have multiple spares. Do they all have to have the same screen size? Do all of them even need a screen?
Apple sells lots of phones. They could be selling 2-3x more. That's just phones. The way they positioned their VR device and watch is kind of telling. They are both kind of satellite devices. But apparently that requires special apps and a new OS (for both).