Especially with Apple's current $29 for all recent models. Take an iPhone SE, 2016 price $400, now sells around... $100 on eBay, so that's let's say a rough $150 for an ok phone with a fresh battery. It will probably last another, what, year or two? You can browse the web with it, and install apps. I use one every day and let me tell you: it's fine. It works, it's not frustrating.

Are these new phones really $1000/$150 ≈ 6 times better?

If you're a VC or early Google employee: sure, by all means. But $1000 for a phone when $150 will do; I find it hard to stomach.