A secondary hypothesis is that there is a contingent of people who buy and install smart home devices just to annoy their non-tech-inclined spouses. That one's not mine, though, I got it from one such spouse.
For instance, in the early days on the iPhone, anyone who upgraded every year was getting a huge improvement each time. The iPhone 3G brought 3G support, so you could actually download things at a reasonable speed. The 3G S had a huge and very noticeable performance increase across the board, and the 4 was the first with a Retina screen.
Another example... for PC games, I really wish I could upgrade my GPU each gen. Especially when you're in charge of adjusting your own performance settings, the extra headroom you get from a new card always feels super nice. (Whether the increase is really all that noticeable is perhaps debatable, which I suppose would go to your point...)
I picked the max config pixel2xl for over thousand bucks, put a custom rom on it w/o google crap, and that's going to last me till it physically dies.
My boss on the other hand, gets both the pixel and the iphone refresh every year, and fiddles with each for an hour each day for weeks. Screw that. End result though - both you and me aren't as good a customer as companies want - they want my boss.
To address your point, which I cannot relate to. If money is the limiting factor and you still think the new stuff is cool - why not just buy a $200 phone every 3 years? the top of the line stuff is overpriced, but the margins are close to zero on everything else, and specs and features, at least for android, are pretty much the same.
As industrial engineer I know what it takes to develop any new product. The real world is enormous and you will always face the unexpected when releasing something new. People is going to buy your product and travel to Siberia or the Sahara desert, or to the beach, and discover things about your product you could not plan.
The fact is that early adopters usually are "long tail beta testers".
So when I buy a product is 2 years or so after it was first released and never have the problems that my friends that are early adopters have.
Maybe if they made an SE-like phone with a better camera, I would buy it: but instead they discontinued the SE.
The people who own SE's all seem to love owning an SE.
That's why I have a Roku TV (well that, and I like the Roku software better) versus one of the other smart TVs. I'd have a Roku anyway so this just frees up an HDMI port.
I just bought a new TV with Roku built in. My last TV was a tube TV.
I’m writing this on a iPhone SE, which I upgraded to for $100 when my 5S stopped working. I kept the same phone case. I’ll probably buy another iPhone when they release a new one with the same size screen. I might get a new phone case then, too.
I was playing Zelda on the original Wii earlier. It’s the newest game console that I own.
Don’t get me wrong, I think new stuff is cool, too. I’d just rather go on a trip than have the newest cool thing.