I'm glad I purchased the 6P a month or so ago. I was waiting for the next Nexus/Pixel but I'm very glad I didn't now.
The problem with Google bringing this 'premium' phone out is this:
Most of my friends have Android based phones. Some Samsung, some Nexus and some Chinese. This is due to wanting a AOSP, mainly down to them being of a computer/tech backgrounds, so talking about 20-40 year olds.
My other friends have iPhones as they like a phone that works from the off. They like iTunes and iCloud and then they go home and use their iPad. Most of them won't buy the newest iPhones due to cost, but then are blind to cost when it comes to upgrade time and will just have a new iPhone even at £50 a month and £150 upfront.
The biggest users of iAnything that I know are my parents and their generation/friends.
My Dad misses a generation and then buys the best one on the market for himself and Mum. They have disposable income, and so have a love for iAnythings. They all work together and sync together with incredible support.
Having had a chat with them and a couple of their friends, they can't see why they would buy a phone at that cost from a search engine company. This must be a massive part of the market.
I'm baffled really. I wanted to part up to £400 say for a 6P upgrade, or a 5" phone for the Mrs but they've fallen very short, there's nothing to even make me consider paying more for a phone.
I think you have described many people really well. I agree with many of your comments. But remember, any tech company that stands still, becomes obsolete.
Fact: Google Android has conquered the smartphone world with an 86% global market share while iOS has again lost market share now standing at 12%. Surveying Android and AOSP, Google is looking at where to take search and has concluded that it is to become voice driven rather than touch screen/type driven. Already 20% of all mobile phone search queries are voice driven. Enter: Google Assistant and Google Home.
But Google surely sees emerging problems including:
1. It derives a significant portion of profits from its search bar on Apple's iOS. It sees high end pricing of iPhones attracting people with high disposable income who buy plenty of Apple services.
2. It sees huge fragmentation in the Android world and cannot get its updates out so that its innovation it brings to the smartphone is lost on a large percentage of Android users. Many Android users are generations behind and only get to see Marshmallow for example when they buy a new phone (did I not see Marshmallow penetration at 10% recently). The OEMs and carriers do not have any incentive to update as their margins are thin to begin with, despite whatever promises they make to Google. Hence Google for many Android users is still just that "search engine company" your parents describe.
3. It sees Samsung as basically defining Android because it has such a dominant market share of Android handsets. Samsung and carriers load its phones with bloatware and often place its apps in central positions ahead of Google's. It has developed Tizen and has pushed into AI, etc. It appears to have software ambitions beyond Android.
4. Google's implementation of its vision cannot be left entirely in the hands of third parties, even "partners". Regulators such as the EU believe Google to be treating Android competitors and even partners unfairly and are urging them to change their approach. By taking this end to end hardware approach, it cannot be accused of forcing OEM/carrier partners to do things against their will or better interests.
5. Smartphones have become commodities and a low margin business for most players. Only in the flagship can profits be made. Apple's ODM approach with Foxconn is now being copied by Google and HTC.
Considering the above, Google has clearly decided to "skate to where the puck is going" rather than where it is. It wants to push us in the direction of where it is going (ie AI, machine learning, Cloud services) by offering a strong incentive. Enter Google Assistant on Pixel, Google Allo and soon Google Home to showcase and differentiate itself to any Pixel or Home purchaser.
To the average person, Google remains that search engine company but some may have noticed that its foray into hardware is not recent. Google believes it needs to be an end to end player in hardware. The Chromecast device for example has been a big success. Google Home actually leverages off this device. Google bought Nest and they have made inroads into areas such as smart thermostats, smart carbon monoxide detectors, video cameras, etc. Google has been seen by many as a leader in the nascent area of self driving cars, having begun its efforts nearly a decade ago. So a hardware and software game plan is emerging to transform Google into a force in the emerging areas of AI, robotics and Cloud.
I see Pixel in this light. A $ 50 million UK ad budget behind Pixel may convince a number of people to buy a Pixel. Who knows?
Maybe many folks will start to see Google as more than a search engine company? Obviously, Google hopes so.
The world right now? Nexus owners are clearly not happy with the pricing of the Pixel.