The model 3 performance model does 0-100 in 3.1 seconds, the model S does that in 2.1, it is therefore faster by a second but 3.1 will beat most cars off the line quite comfortably. The Supra for context does that in 4.1 seconds.

Nothing wrong with keeping a sport and luxury model, however I would argue that the latest models are quite sporty and luxurious in their own right.

Companies like Ford constantly discontinue models, but they don't get the level of attention Tesla does.

If Tesla aren't seeing the Model S and X being sold to anywhere near the degree of the 3 and the Y, then why continue making them? They aren't as globally available and its clear people don't want them as much as the others.

The S is faster than any other Tesla. Non-plaid S and X are much faster than non P 3 and Y.

Your main point is highly valid. Why does any manufacturer bother to make anything better than a Camry?

Because it makes money, of course.