But I wouldn't say Apple "reeks" of insecurity... We don't really have any knowledge about how much they have up their sleeves, and they've had a long time over the last half-decade to lay foundations for future maneuvers. Besides, if they can convince the everyman that they thought up modern design all by themselves, they could gain a massive advantage here.
I think Apple is trying to capture low-end market using iPhone 5c (well... China), yet the production is not efficient enough to make it significantly cheaper. It's also a failure because Apple consumers are not that price sensitive. In addition to gold version of iPhone 5s (for the vain), and flat UI I upgraded last night, if their only innovation is finger print scanner, I'm not impressed at all at Apple this year.
Apple are definitely playing catch up on the software design front, but signs are that they're heading in the right direction. iOS 8 and OS X 10.10 will be interesting to watch, to see what the Apple's design team can manage with a little more breathing room in which to work.
But instead Apple chose to price it the same as the previous iPhone 5 and expand their margins.
The 5C is built cheap. It has old, high-yield silicon, a plastic case, and a small screen. It is almost certainly cheaper to manufacture than, for instance, a Nexus 4 (which, as much as Apple wants to criticize "junk", is one hell of a well built device for $199, no contract). Where Apple needs to compete with cheap I have every belief that they will do what is necessary with the pricing of the 5C.
The 5c has the same size screen as every other Apple phone.
The 5C is built cheap as a facet of its entire construction, one part of which is the screen. Your screeds about other devices is utterly and entirely irrelevant, and is your own hangup.