Oh, and while we're on this subject, let's not forget that the first computers cost millions (or tens of millions of dollars) and were about as powerful as a modern $0.20 microchip, and frankly less useful and infinitely less reliable and more maintenance-hungry.
Now, here's a small rebuttal to the idea that we have all these lovely features and capability and don't use them wisely. Let's look at, for example, video games. Frivolous expenditure, right? You have to pay for a computer with a nice graphics card (okay, these days, you don't have to, but that's a recent development) or a console. You have to pay electricity costs. You have to pay for most games, either up front or monthly or by purchasing crap in-game.
However, the difference between video games and TV is that video games subsidize science. Seriously - massive, absolutely massive data throughput and computational power used by public and private laboratories world-wide, whether it's nuclear modeling or weather modeling or physics or protein folding or security analysis, and so on and so on, would have been years or decades behind if people didn't play video games. Similarly, business computing would have been years or decades behind if early video game platforms (and computers used for the same) were never developed and never sold. Those massively parallel computation machines - they may be used for science and business, but they were developed to draw pixels on a screen and shade in triangles. PCs (as in, non-mainframe computers, ignoring the precise hardware and OS that some might call a PC or not a PC) would have been much more expensive if not for people buying them for video games, and the pace of their development would have been much slower. Similarly, all sorts of CAD would be far behind.
The story is the same for that frivolous smartphone people have. Regardless of how silly you think they are, every phone sold makes every phone next year more accessible. Maybe for you that just means same cost but better features and you don't care, but for a lot of people, that means they will for the first time be able to access the internet. If nobody bought the original $1000 iphone and smartphones died, there may well have been a billion fewer people today who have internet access. But people did buy them, and people do buy them, and that's why we have $60 phones that require almost zero wired infrastructure (massively expensive compared to cellular voice/data infrastructure) and therefore can both be bought and used in countries that don't have modern roads/electricity/communication.
TLDR Regardless of your opinions on things like video games or smartphones, the huge amount of money they generate make a lot of modern science, business, industry, and communication possible. That's pretty cool, IMO.
