Yesterday they came out with a five thousand dollar laptop with 128GB of ram. You can spend 20 grand on a mac studio. Companies can address different market segments.
The software has taken a nose dive, but I don't think it's related. If anything, you'd think that selling lower spec machines would drive software improvements.
I have no idea why anyone ever thought that Apple only made premium devices for a premium market. Apple has always been (or wanted to be) a mass market computer and device company and I have an iPod Shuffle to prove it.