People aren't stupid, they know the shops exist and the risk associated with third party repair. It's not first party manufacturers or government's job to mitigate that risk or convince people its acceptable for the price - that's the job of the repair shop.

They aren't stupid, but they don't often have any good reason to know such shops exist or that their specific problem (e.g. phone dies quickly after charging) can be quickly and cheaply fixed at such a place and doesn't require purchasing the latest and greatest iDevice. In the last year I've taught a half-dozen non-technical acquaintances that such shops exist, and they all opted for the repair route instead of a new phone.

A lot of the risks are caused by the status-quo. There are indeed more risks if the devices are built not to be repaired (adhesive vs reusable fasteners, serialized parts so unknown software of dubious origin has to be used to reprogram them, etc) than if the devices were built with repairability in mind.

They'll put up with more than they need to in order to run whatever plops out of Apple.

Go ahead and try getting your friends to use a pinephone where both of these "repairs" are trivialy doable by the end user.

People will take out loans just to run snapchat and iMessage.

Yes.