I think ceasing development of their AirPort routers was a huge mistake.
Imagine an alternate reality where the Time Capsule could be used to backup Mac and iOS devices locally. Imagine an AirPort Extreme that had a built-in DOCSIS 4.0 modem. Imagine the AirPort Express merging with the HomePod Mini — a small voice assistant speaker that also acts as a Wi-Fi base station with an audio-out jack for external speakers.
All of these devices, along with the Apple TV, offering mesh Wi-Fi technology and having the option to act as a stand-alone router. You could mix and match to add the functionality that you want and each additional unit improves Wi-Fi range and stability.
They could even add some fancy sensors for temperature and humidity in each of the products to help promote usage of HomeKit.