What market does? Do you have any evidence such a market exists?
I have a good handful of such people in my social circle, ranging in age from 23 to 58, usually higher education levels, and usually non-technical. The biggest common factor amongst them is that Android doesn't work for them.
Yes. I have evidence there is a market for this, consisting of 1 or more persons, willing to pay at least $0.00.
Not every OS needs a 1-2 billion users install base.
People don't care about open source and sustainability but they care a lot about not being hacked and having a phone that runs, and runs fast.
You overestimate non-technical people. They're not afraid of getting hacked, they don't understand why they should be, and they don't get why unmaintained software is bad.
People don't give a shit to the extent that the device works well. Security is of course a huge part of that but you don't understand people well enough if you think there's a significant group that will sacrifice good UX and reliability for security and rapid updates. That's what nerds like us do.
Think about Apple's Macbooks, I'm pretty sure that they are status symbols as well.
People who buy devices as status symbols, to show off how much money they have, are not the target audience of this project. They usually do not care about the benefits of open source and sustainability anyway. This project is about recycling old phones, which would be insecure/useless without an alternative operating system.
> Another driving force is that a smartphone made a decade ago would simply not be able to use many of todays apps because it is missing certain sensors.
That is right, but it is theoretically possible to get the devices from a few years ago running for five more years, and the devices created today for the next ten years.