You can't get an iPhone clone for 10% of the money - it won't have the camera, the performance, or the operating system. Perhaps in the past you could pay 60% for an equivalent Android, but now Androids are creeping up in price. Also, "fancy headphones" are not required - a set of headphones plus an adaptor come free with the phone.
There are many legitimate criticisms of the iPhone, but yours are way off the mark.
No? I bought my android camera-phone a couple years ago for a couple hundred dollars, and it does everything you mention. It has a camera, fast OS, GPS, can use the internet, and even makes phone calls! In fact it even has other features that iphones don't, such as the ability to add SD cards for more storage.
I just can't fathom any possible circumstance where I would be wanting for lack of a $1500 phone, and what it does differently and materially better than any other phone of the last 5 years. Like the megapixel wars in cameras, we're at a point where the improvements are incremental at best, and result in little actual real world noticeable difference. For instance, unless you're routinely printing 8.5x11" prints or bigger, 6MP is about the limit of where the eye stops seeing improvement
for prints. This is exacerbated on screens, allowing you to get away with about half the resolution.
The truth is it's a status symbol. No different than a Porsche. If you want to spend $100k to drive around at the same 100km/hr vs someone else doing it in a $2000 corolla, fine. But don't say that one fancy car is the functional equivalent to outfitting multiple people with high speed mobility for life.