I didn't pay attention for the non-Pro, but for the Pro they 'said' they give you 256GB for the price of last year's 256 GB. So it seems like another step in moving the prices up.

Edit: 16 Pro 128 GB was $999 at introduction iPhone 17 Pro 256 GB is $1099. Better for the non-Pro though - the 16 128 GB was $799, the 17 256 GB is also $799.