Eh, I think the problem is the customers just take what apple gives them
I think this is true to an extent, but my argument against it would be to point to the period where Apple resisted making large phones, while Android phones were getting bigger and bigger. (This would be approximately the era of the 5/5S) In the more wild-west product lineup of Android, it became clear that bigger screens equaled more sales, for better or for worse.
Eh, I think the problem is customers just prefer bigger phones. I mean, personally I prefer the mini, but I think it’s clear I’m in the minority.
Using a rebrand to try and downplay the compactness may work for sight-unseen buyers, but in the end if they’re shown the bigger phone in-store, past sales would suggest they’re likely going to pick the bigger phone. (Phones ended up so big in the first place because people preferred them, too.)