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I don't get it. Isn't rubberized case a far better solution?

Smaller, lighter, and fewer moving parts.

A rubberized case wouldn't protect as much. ie, the phone feels more impact from a similar fall except for maybe multi-story drops where most cases don't do anything anyway. Also, this protects the screen from falling onto an uneven surface (think gravel) whereas a rubber case won't help at all, even if it includes one of those annoying plastic screen covers

Also, cases without bulky screen protectors can't adequately protect curved displays, which are increasingly common nowadays, from falls on non-level surfaces.

It's almost as if that's a stupid design.

Unfortunately, it's the consumer that pays for that, literally, since they'll have to buy a new phone if it breaks (a win for manufacturer, so long as they buy the same one anyway).

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