Bought the Pixel 2 for $350 a few years ago, and I have yet to see a phone that has is worth spending more for my use case (email, browsing, video conferencing, some utility apps, light photography, little video or gaming). I wish my battery life was better, but outside of industry reviews, I encounter almost nobody who says "oh, last time I charged my phone was yesterday, can I borrow a spare charger?" (i.e. everybody always makes sure their car, their desk, etc. can charge their phone). The only thing that is going to make me switch phones at this point is the USB-C connector port no longer holds a cable securely.
Having a stock Android phone that can fit in my pocket, retain some charge for most of they day, allow me to read my email, and can take a decent picture is fine for me (and I know, I'm not everybody). For me, an upgraded mid-level phone that costs less than a month of rent is an adequate value proposition; especially if it gets timely updates. While there are other phones at this price range that are going to have better specs, those specs won't matter much to me, far less than getting timely security and OS updates.
I'm glad Google is targeting the mid-tier market instead of trying to out-Apple Apple. I don't understand the mindset of buying a $1,200 phone when you don't have enough money to save for anything, but that's probably my age showing.