The iPhone and Mac have good performance and power efficiency, but people will always want their phone and laptop to do more and get longer battery life. Apple customers’ appetite for compute is practically bottomless.
I don't think so, the typical iPhone user has not scaled up their compute needs much past the 2015 A9.
And if you exclude the computational photography stuff, I could imagine some users don't take advantage of it at all.
What games are you referring to?
Genshin also needs a A10 as minimum.
With low quality graphics admittedly, where you'd get this information?
It's anecdotal but I don't know of any iOS/iPadOS user that plays anything remotely demanding. Most users I know don't game. Those that do usually play casual games like Candy Crush.