In this pricing model, the power users effectively subsidise the entry-level users.

Not saying I agree with it, but Apple has been doing this successfully for many years.

I’ve seen this argument before and I don’t get it. How is it that power users are subsidizing the entry-level users? The implication of this seems to be that the base models would otherwise be more expensive, which I’ve yet to see a shred of evidence for.

It seems more likely that Apple is just straight up overcharging for upgrades, and people have to pay it because nothing is user-serviceable or user-repairable anymore.