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The newer CPUs are more efficient and faster. In a mobile format you want the CPU to process everything as fast as possible and then return to a low power mode for battery life.

Apple re-uses the same core across their lineup because it’s cheaper to build 100 million of the same core than to design and maintain two separate CPUs that go into 50 million devices each.

The cpu is better but the software is worse and more bloated so they fight against each other
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Do they really do it just because it's cheaper? I thought they did it for each generation to offer the best of that generation; it makes sense for more powerful chips to have more cores and higher capacity, but it doesn't make sense for each core to arbitrarily be less efficient or less performant just because you didn't buy more of them. Especially because this approach makes the base models an extraordinarily high value compared to base models from competitors.