It's still considered a high-end flagship, due to its price and specifications.
Main differences from the 2 XL is that the Pixel 2:
- Has a smaller screen (5" instead of 6")
- Lower resolution screen (1080p vs 1440p)
- Higher quality screen (Samsung AMOLED vs LG OLED)
- Wider aspect ratio (16:9 vs 18:9)
- Larger top and bottom bezels
- Smaller battery (2,700mah vs 3,520mah)
- Different manufacturer (HTC vs LG)
That's about it I believe. Camera, software and features are the same between the two.