They could make a m1 SE in late 23 with a plastic case as old MacBooks, same ports of m1 air, slightly less battery and 1080p screen at 500$
and it will sell like crazy.
Their consumer base is shrinking even as it becomes more profitable. I doubt they have the nerve to cannibalize their high-end branding and profits, but if current trends continue then they're in trouble in the long run.
I think the only problem with this is that that Apple permanently switched to higher resolution screens, text looks awful at 1080p since Apple dropped font anti aliasing. High DPI screens are a requirement.