I’m not a pro or anything but amongst my family members I tend to be the one who likes documenting the most, and I like the idea of really high quality playback of special moments many years from now.
That permanently enabled tone mapping and noise reduction is actually a huge obstacle in post where you have to give your video clips the look you want and match them to glue into a single video. And you should always use a gimbal, even just a simple mobile one: no matter how good the built-in stabilization is, without a gimbal you'll have parallax and shaky uncorrectable motion blur when shooting handheld on the move, especially in closeup shots. And external lenses and especially ND filters are a thing too in mobile video making, in fact they are super useful.
Vendors like Apple spend a lot of money marketing the idea of effortless video making to consumers, but the reality is that even a high quality video blog requires a lot of attention to detail and careful planning. Point and click and "one size fits all" philosophy works much worse for video than it does for photo.
This video is quite a good illustration, pitting an iPhone 12 Pro against a Sony A7iii (a quite respectable camera): https://youtu.be/TrEdAKCHSZg With these default settings the A7iii is blowing out the highlights in the sky, the church and the swan. Which could have been prevented by choosing one of the Log settings but then it would have required making adjustments during video editing.
If it's for taking a video of family / kids and sharing it immediately with friends/family, the iPhone will produce better results with minimal effort (and that's not to mention having to bring a heavy camera, lenses, tripod/gimbal, accessories).
I was fairly interested in video at one point when film (Super-8) was just transitioning to video. But it was all such a hassle that I pretty much just kept to still. An iPhone (or a videocam that's a few hundred dollars) would have been so great.
So maybe there are some of those aspects which dedicated cameras could do better without stepping up the resolution.
But, yes, if you combined APS-C Fuji, say, with the software available in an iPhone you'd have a really impressive instrument and presumably we'll get there some day.
To your point, this is balanced by the old photography truism, "The camera you don't have with you is always zero megapixels." Thus, for personal day-to-day use, there is tremendous value in a good camera that fits in your pocket.
It’s now a surprisingly expensive endeavour to noticeably beat iPhone 4K Dolby Vision HDR.
Something like the Nikon Z9 with a decent prime lens and a stabiliser mount? That’s approaching $10K and is nowhere near as convenient or practical.
Anything less than that and the quality difference just isn’t worth it in my eyes (for home videos at least)
Collect all the video at a higher resolution than you can display and then only show the small part which is in the smaller user view field.