1. It does - because I know the resources and skills needed to develop such products - which could be used for many more useful things - heck even making a better Android phone.
What gives you the right to decide what is more "useful"? What gives you the right to decide what these people FREELY choose to do with their time? None of them were forced to make this they CHOSE to do it. You have zero right to declare they should have done something else. And given that you are criticizing this particular device and not, say, all game systems or computing devices in general you have zero grounds to stand on. This is no more or less useful than any other gaming device or toy or any other device that isn't specifically focused at meeting some actual need. And again, you being an "engineer" has exactly zero to do with that.
2. It will. And it's a waste of money compared to, for example, a Nin. Switch.
Unless you have the power to see the future you can not declare what will or will not happen, so stop trying.
And there is no objective standard by which you can declare it a waste of money compared to a Nintendo Switch or any other gaming device. Whether or not its a "waste of money" is entirely dependent on the individual and what they value. People have different tastes, stop thinking YOUR particular view is the only one that matters. You are not the center of the universe.
3. And that is the exact problem that I am highlighting - we are surrounded by "toys" in an attention economy.
No, you aren't highlighting anything except your own judgmental attitude. People have fun in life, one way is by using toys. You may personally see that as a problem, but if so you better never ever EVER do anything for fun or purchase anything for the purpose of fun. Meanwhile, what does an "attention economy" (whatever THAT is) have to do with it?
4. We are discussing this one in particular.
No, we aren't. You are making absolute declarative statements about "toys" and "waste of resources", ergo its completely valid to include the "toys" you waste YOUR resources on. If you are going to base your argument on toys being a waste of resources for others, then you absolutely better not spend any resources on toys yourself.