This is pretty reminiscent of what Microsoft did with their flopped Mixed Reality products. "Hololens Industrial Edition" and the US Army contracts made it pretty clear that these were not going to be a mass-market hit. And the benefit of hindsight has not really vindicated the XR paradigm at all, Google Glass still looks as goofy and awkward as the day it was prototyped.

Why Apple decided to steer directly into the same minefield, well, only Tim Cook could say for sure. Would be embarrassing if it was just insecurity that Zuck would beat him to market.