As long as they keep 3.5mm jack, installs most recent cpu, upgrades camera sensor and IP67 - I would gladly spend 500$ for it.
Who needs full-hd resolution in 4.6inch screen.
Not an apple fan but I love idea of a smart little and nifty phone.

I really hope that Apple comes to its senses and makes a new SE with Face ID and a full screen.  I've always thought that Apple should make any new phone is 3 sizes:  the SE size, the X size, and the Plus size, and all three should have the same (or at least similar specs) and similar price. 

Apple should stop framing the SE as a "budget" phone.  Yes, the original SE was cheap.  But if it has all the bells and whistles as its larger cousins, but still in the smaller form factor, its price should increase.  I know I'd have no problem shelling out top dollar for a top level phone - so long as it's the right size (SE size that is). 

I have the 2016 SE right now and its price had absolutely NOTHING to do with why I purchased it.  The ONLY factor of why I bought it over all phones since was its size.  To me, it's the perfect size phone for one-handed use. 

Apple is a company that makes premium products and if that comes with premium pricing, so be it.  If someone wants a cheaper iPhone, look at used models or older models.