I think there’s room for both. Apple will always offer premium, expensive products and it actually should. BUT it could also offer more affordable ones to people that would like to have access to its ecosystem without paying through the nose for it.
The $499 “iKeyboard” thing, for instance, would be GREAT for a lot of people, students included. Pros would never buy that thing, but that thing being available to all homes would be a big deal. It’s not as if Apple just HAS to have a 40% margin on EVERYTHING, right?