I like my smartphone not because I can play Angry Birds on it, but because I've got my email, Facebook's messenger, WhatsApp messenger and Google Hangouts always connected.
So if you see elderly people that don't like smartphones, that's because those people don't use email, Facebook, Google Hangouts, Skype, WhatsApp and so on. But then again, there are elderly people that do.
We like to embrace new technologies just because. The elderly on the other hand value their time and tend to be very conservative, but give them a valuable use case, like video communications with their children that have left the country and you'll see them with smartphones.
On the other hand there is something to be said about the quality of these smartphones to function as phones. For example I remember fondly of how I didn't need to look at my phone, just for dialing a number, a function that's so important while driving. Yes, we've got voice recognition now, but it's so shitty.
I now think that they actually do like being connected, but they just need a bigger screen to work with. Which is why the Note II is a good option.