If you are competing with other hardware sellers in the same software ecosystem, then you are competing for buyers that have a diversity not only of means, but of value weighting for different features; having different SKUs with different feature mixes at similar price points is how you compete in that market.

Having simple tiers rahter than multiple offerings with different focuses at similar price points and also a diversity of price points works really well if you aren't competing that way, but not everyone can be Apple.