RE: Buying a bottom of the line phone was a mistake
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Midrange is absolutely the way to go unless for some weird reason you really need whatever the latest expensive stuff does. I have a redmi note 9 pro that I admit has really lasted. Four years in now and I think it's only just starting to show it's wear in the battery. I don't have a phone case for it, never do use those. I'm usually more careful and don't drop my stuff, but the build quality in this hasn't been bad at all in the few times I have dropped it and it realistically should've shattered.
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This was kind of my first foray into getting the worst possible phone and I felt like a real trailblazer when I was doing it, like I was trying to prove a point to all of my friends that I felt were spending way too much money on phones but I'm with you on mid-range. The latest and greatest is always overpriced but I think I'm just gonna find out what was the latest thing LAST YEAR and get that one next. The cheap ones, well, I don't think they even really have the power to run the apps that come pre-installed on them and the manufacturer knows this.
I feel those phones are more focused at the less fortunate, and especially the elderly. I was like you in discovering that they're actually a thing still, and that was when I travelled out of Europe and started to notice the income differences. I looked around and started seeing those phones more and more, mostly in the hands of the elderly that just needed something that can accept and make calls every now and then.
I do think once this phone kicks the bucket I might actually upgrade a little. I don't care for phones with "good" cameras since I use an actual camera for everything photography. The main thing for me is battery life and storage, since app bloat is massive these days. And longevity in the battery means it'll hopefully last years. 128GB these days just doesn't cut it.
I don't need a fantastic camera that doubles the price of the phone but something decent would be a nice touch. It shouldn't be surprising that on a $100 phone the pictures are trash and most of the time they are blurry unless I have perfect accidental lighting or something to stabilize it on like a table.