This leaves out a huge amount of the market that might want a macOS device but are unwilling or unable to go to the spare-no-expense level.
I understand that Apple doesn't want to create a "cheap" Mac but they're even unwilling to do "affordable".
Prob. does not have the margins Apple wants
Schools. Chromebooks are now an option and the iPad just isn't a laptop.
We were buyers of a lot of Mac minis, iMacs, and laptops, but folks are starting to ask for Surfaces and the Intel NUCs are a good deal. At this point, the graphics arts people might get Windows boxes if Apple doesn't get their crap together as Adobe runs just fine either way. That would be a true shame.
Many mac users (and perhaps apple users in general) are the type of people willing to pay up for the top-of-the-line, latest-and-great, spare-no-expense tech gadget.
I've seen this with companies giving their developers the maxed out mac + mac accessories.
I've seen this with individuals who view their mac laptop as the biggest most important usage of their time.
Where have you seen apple struggle because they were being undercut by competitors?