Good question, I'm not sure how industrial design works, but I'd assume they balance usability and looks.
It's a tricky one.
And depends a lot on the knowledge of the designer.
there is a BIG difference between say the design of a watch, where the function is simple, but a LOT of it is the form/looks.
As opposed to say a piece of machinery, a power tool, then being superb as a piece of equipment that does it's task in the best way must be the top priority.
A chainsaw that cuts down trees just do it's job well, even if it could look better.
Modern phones and tablets are terrible designs for human hands.
If someone sat down, years ago, and said, ok, come up with a design for a object from 5" to 13" that's sole purpose was to make this as easy to drop as possible, and hard to grip as possible, and as likely to break as possible, they would design what we have today.
Smooth/Flat/Glass/Slippery/Shiny etc, are all terrible designs for human hands.