I don't see anything wrong with having a Core-M 10.8" Surface 3.1 and a Core-M 12.1" Surface 4.1 although I think if they lowered the whole pricing structure by $100 they would sell a lot better and keyboards should be at least $30 less, Pens $25-30 not $50. other country pricing accordingly except for countries on the "List" they will have to pay more.I reckon you could be on to something there. My main complaint with the Surface 3 is the pricing (well, and sizing) being too close to the Pro model. Getting rid of the current entry model might make a lot of sense...
Would be fine with me I think i5 seems to be around the peak for the Pro models anyway.