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Isn't the whole goal to serve as close to everyone as possible? Or is the idea that these will always be niche phones sold at flagship prices but without flagship features? I get that universal appeal is an impossible objective, even for popular brands, but surely a part of the grand scheme of all this is to prove that these sorts of phones can have mainstream appeal if given the time and support needed to develop into competitive products.

This sounds more like the analogy breaking down than illustrating a meaningful difference in scenarios. The police already /can/ break a lock from just about any manufacturer. They just break the door down and enter regardless of the phenomenal quality of the lock itself.