Seriously this is a good question. Why is the XL $200 more than the 2? If like Google said in their keynote, "we don't reserve features for the bigger device" (oh shut up) than why are they greedily charging more for the XL if the only differentiators are the bigger screen and bigger battery?
Because that's good economics. It's what every major company does - offer products at different price points so they can maximise their sales. Let me try and explain:
Conflicting aims of Price Setting
The aims of big companies are:
1. To sell their product at the highest possible price
2. To sell as many of their product as possible.
Now these two aims are often at odds with each other. Apple could charge 3,000 for the iPhone 11 and someone out there would buy it (quite a few). Some people love Apple, love new technology, love having the latest and greatest first that they would shell out such prices. But most of us wouldn't.
Similarly Apple could sell their iPhone X for 600 pounds and they would sell an insane amount of stock, but would make less money because the profit margin would be tiny.
So they could just work on finding the best balanced price for your product, the price that is high enough for good margins but low enough that many still buy it. This is clearly a common tactic, but not the most popular for big firms. They prefer a different approach:
Sell at different prices to different people.
This is the corporate dream. If Man A is willing to pay 1000 for the iPhone, they would charge him that. If Man B will only pay 700 for the iPhone, they sell it to him for that. In that way nobody is scared off purchasing by the price (so they sell loads) and they get massive profit margin from the really keen buyers.
Of course, it's simply not possible. Man A would simply pretend to only want to pay 600 pounds to get it cheaper.
So what do companies do? They make differentiated products at varying prices. (e.g. for Google 2 vs 2XL or for Apple iPhone SE, iPhone 8, iPhone 8+, iPhone X) This means that they can sell the expensive phone to the super keen, the middle phone to the relatively keen and the cheapest phone to the price-sensitive. It's the best of both worlds for the company.
This isn't a mobile phone specific tactic, it's basic economics. Starbucks are the king of it (sell a simple coffee to the price-sensitive, and a Pumpkin Spice Latte to the keen buyer) but you'll see it in nearly every company (e.g. Downloadable extras in Video Games, Tesla selling the same car at two prices with battery limited by software to 70% in cheaper ones, different membership tiers with online products, Supermarkets selling cheap own brand products next to more expensive brands)
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