Self-labelled neo-Luddites and the tech-stressed are searching for phones with fewer features. Industry experts cite precarious profit margins and a wobbly market around this need.
People want phones that don't cost $1000+, lack basic features and constantly prey on their personal data. That's what they want. Some express that by saying they want "dumb phones", but the first part is the larger driver here.
A big part of the markup is simply the proprietary systems that run the phone. Apple's restrictive OS, combined with the planned obsolescence strategy for older units, corral their customer base into buying newer models every 3-5 years.
Android's open system allows for competitor brands to compete alongside the bigger publishers - Samsung and Sony and Lenova and Motorola. But even then, we've lost the more modular phone design to a hobbyist-hostile manufacturing strategy that precludes people from swapping out old batteries or doing basic repairs.
This, combined with data providers that try to bake the price of new phones into the subscription service (AT&T, Verizon, and Tmobile all offering "free" phone upgrades on painfully expensive plans) make the industry this extractive rent-seeking mess.
I think that last bit is more of a 'what you make of it' situation, regardless of how smart or dumb a phone is.
Unfortunately the manufacturers want the data and advertising revenue, and they'd only be persuaded to offer an alternative if they made the same amount of money.
If each sale of a $900 smart phone gives them $100 of ad revenue over a couple years, I'd bet my bottom dollar they would charge $200 for the 'dumb' version.
I think the distractions are partially a user issue and partially a company issue. Companies make their programs noisy with notifications by default that I only change it once I've found it annoying. They also make their program so bloated that they are slow to load and execute. By the time the app loads, I've lost my flow and now the tool is a nuisance. My mind is already cluttered. I don't need tech to slow it down.
I see what you mean. People use their devices at different levels. That may not be the best way to put it.
My meaning is that a portion of the users will be the type to spend a couple hours digging through each setting on a new device to set it to their needs. Another group will use the device with minimal initial adjustments, and tweak things as they find things they don't like. Then there's a third group that will almost never open a preferences panel and just use a device by its factory settings, likely to never consider potential improvements to their user experience.
From what you've said, I imagine your in that second group. I myself am in the first one I described; I look at the options of any hardware I purchase or software I download before I actually begin to use it.
Unfortunately - in the context of this post - the number of people in that third group I imagine outnumber us by multiple orders of magnitude, and therefore companies with shareholders to appease will always manufacture devices with as much bloat and advertising and invasive data mining as they can be paid to put in.