Not moving to USB-C is understandable given the revenue Apple receives from MFi. It's definitely an annoyance but it's not a deal-breaker.
Not bringing back TouchID is a much bigger issue. Even pre-pandemic FaceID was pain in countries where mask wearing was common due to the flu or due to air pollution. With the pandemic, FaceID is intolerable and there will likely be mask wearing well into 2023, and of course there could always be another pandemic down the road.
Apple appears to be doubling down on a bad decision. Hopefully there will be a larger version of the 2020 SE with TouchID for those of us that will never buy a phone without a fingerprint sensor.
3D optical TouchID would not displace FaceID it would augment it. Having dual biometrics would open up new use cases for the iPhone.