For me it isn’t really about the cost, it is about the hassle. I just can’t be bothered to switch to a new phone every year anymore. It used to excite me, now I just see it as a hassle.So long as you're getting half the price when selling/trading in after a year, it's really not that big of a deal.
Unless I see a new killer feature that will make my life better, I can’t be bothered. Last feature that got me super excited was dual sim, because at the time I was traveling a ton.