I have just bought a refurbished Iphone SE from China for 175 to replace my older iPhone 5. No way I am buying their latest ridiculously overpriced models. Staying (at least) two generations behind seem to be the perfect spot for me. As you say it is a fucking phone, not a damn investment!
I had 64gb 6s for four years, gave it to my son, got myself XS with 256 gb memory. Why not splurge a little?
The price is ridiculous, of course, two observations:
1. Great camera. You wouldn't believe how much better it is comparing even to 7, SE non-withstanding.
2. Yes, it is a bit of a luxury (more expensive than it should be), so what? It is not a hublot for 25-40K.
In a grand picture of things, $1.2K on a two year zero % paying plan is fine.
Comparing to my "losses" in 2018 while hodling btc, it is close to nothing yet a pleasing toy.