They could, but if they have superior hardware I doubt they'd want to have to support the long tail of Peloton users with existing bikes.

Why not? If Apple buys Peloton, they also get all their staff and offices. The existing staff can continue working on their existing products just as before, while transitioning to Apple, no?

If Apple believe they can make a competitive product to Peloton (and I imagine they do) then the additional staff and offices aren't necessarily a good thing.

To put it another way: why should Apple buy Peloton? Apple itself is already a premium brand with huge awareness, so a buy for brand reasons isn't that persuasive. Peloton has a whole range of hardware but none of it is compatible with existing Apple hardware, so integration might be a drag.

I have no idea if Apple should buy Peloton or not, I was just objecting to your reasoning. It's completely normal to get acquired by another company and keep on working on the existing products as is, that's all I'm saying.

It's normal, yes, but is it preferable for the buyer? I'd see it as a potential reason not to buy.

Or just Apple Bike+

This seems more likely to me.

Apple would want to design their stationary bike from The ground up w their bicycle experts. (They may already have done this a few times)

Also, letting Peloton do it’s thing is a small safety valve on the anti competitive question.