You don’t have to get it though, people find value in different things. I don’t understand why people purchase luxury cars when basic ones do the same thing. But that’s because I value the transport from A to B, while other may value the comfort or features. The aspects you find important, are what you would be willing to pay more for, even if others don’t see its value.
You say a worse phone, but to me the size is more valuable than the internals. I would pay $1500 for an iPhone mini with a worse camera, but same battery life as the iPad Air and runs iOS 26. No one will ever understand why I would do that, but it’s important for me. I value form factor more than internals because my threshold requirements for internals are minimal. A phone that is thin, small, and has a flush camera, I would pay way more for than a phone that doesn’t look good to me but has 3x the processor.