I agree with you Robert. The 'high end' too has tilted far too high IMO pricewise - this applies to Apple as well, if not others - in the face of supposed 'innovations' that have at least sometimes introduced controversial debate at best to driving some loyal customers away in many respects - thinking the whole 'notch' angst just for starters.
Beyond that though, the stark reality is that $400-500 every 2-3 years is about the limit for a ton of average consumers who just want all the main/usual suspect high points checked off, with more updated security and some perceivable performance improvement/better battery life than their last phone perhaps, and in most of those consumer's eyes/experience with the relative big picture plateau technology has hit, it doesn't take an $800-1k phone to give them that. I state this as someone making this post on a refurbished LG G5 - there's literally nothing (other than having consistently reliable GPS, but that's something even then I could probably laterally switch to a used/refurbished GS7 and fix too if I wanted) I absolutely either want or need to do on a regular basis that I can't do currently with this phone. I'll eventually upgrade to something newer mainly to keep up with Android, and in my case I might be willing to shell out only maybe $300 or so to do that, but even then that's driven by OS/software vs hardware - and I'd still be getting a hardware upgrade regardless by default.
I'm sure both companies will continue to make profit emphasizing the launch day/top of the line premium crowd at the expense of true midrange bang-for-the-buck value for now, but longterm they're going to be dangerously close to playing Russian Roulette with 5 bullets instead of one - and all it takes is one company with a combination of the right phone at the right price with the right marketing and perfect timing to start changing the game entirely. LG, Moto, OnePlus, others, eventually one of these companies are going to have a real shot at it if they finally bring the right package to market and Sammy/Apple keep with the status quo and disenfranchising enough people. Not saying it *will* happen either, but it absolutely can. It's not like we've never seen prior mountain kings toppled before in the consumer world, much less within our lifetime.