There are multiple problems with your statement ...
- It shows you're an American, otherwise you wouldn't hand-wave the price of an iPhone, even when speaking about phones being given by kids to parents.
- the iPhone seems simple to you because you've gotten used to it. Compared with classic rotary phones, the iPhone is anything but simple - of course, for the provided functionality, the iPhone has a lot of features packed in a tight package that has a pretty simple interface by today's standards. But regarding parents, on the contrary, I've watched my mom struggle with an iPhone, before she got back to an older Nokia model, with a simple key pad and no extra functionality other than SMS.
- because of the specs, the iPhone consumes a lot of battery, even by using it only for your basic needs - it's sure nice to have a phone with a battery that lasts for 7 days of normal usage.
- mobile phones are designed to be usable for 2 years, after which the battery and the hardware start falling apart.
Also, the T9 dictionary was really awkward. I don't think anybody was suggesting that Nokia should return to their older models. I do think that some company in the future will come up with a sexy design and a set of features for simple phones that customers will absolutely love.