Google is pretty much taking the lead in giving people what they want in both devices. I think there's another brand out there that does the same but they're not as popular as the Pixel line. If Google's new Pixel phones do well enough, and other brands follow their lead with offering all the top specs in smaller devices - we just may see Apple and Samsung follow suit. Only time will tell.
For me personally, I'd have paid the exact same amount for the smaller phone. I'm not buying the small phone to save money. I'm buying it because I simply don't want the larger phone anymore. Brands like Apple and Samsung can make just as much money offering the same specs in a smaller model with a high price tag. I think most people are paying more for the better features as opposed to the larger screen. I could be wrong. It wouldn't be the first time. But agreeing to disagree is -awesome-.
As for cars, yeah, it's typically the most expensive model - maybe flagship - that has the latest in technology and best features. Nothing abnormal there. But giving high tech features to the same model with the larger engine is just stupid. I think BMW is pretty good at offering features for any model - as long as you pay for them. That makes sense. At least OFFER for people to hand you their money...