It's all in how you spend your money. Like, in his list of "luxuries" you could get basic cable so you have access to news and weather, buy a used video games console/PC, buy your video game second hand and/or wait for sales, or buy a second hand/refurbished phone.
That's frugality and something more people need to practice. However, some people are just terrible with money because they've never seen it used correctly. Or who knows maybe that nice smart phone is the only luxury they allow themselves.
I see at least 8 sub $100 smart phones on craigslist right now. Couple that with pre-paid/barebones plans and it's just as cheap as your "dumb" phone.
You're being pedantic as hell about this and having to make a trip to the library to do online shit after working two jobs, cooking every single meal you eat, most people just don't have the time/energy.
(And btw, that phone you're using as an example is a smart phone running android 11.)
To add to this, I used to buy the AT&T pre-paid phones all the time that were smart phones. Paid $40 for the phone (ZTE Blade Spark Z971) and used it on a regular plan. So, in all reality, it goes right back to how and where you spend your money. Smart phones don't have this huge barrier of entry anymore. They are super easy to get for super affordable prices. The problem you'll run into will be the plans you can get.