You are correct, On a sunny day both types of device will produce similar looking 1000 pixel wide web-ready exterior landscape shots. Now take them into a dark cathedral with high stained-glass windows, try for a quick portrait of a priest walking by holding a candle, and the DSLR will still get the shot, and it will look great. Smartphones cannot do this...yet.
I shoot pics of my kid with a $3500 35mm dSLR and constantly save pictures to my phone. Whenever I show people the pics on my phone, they almost immediately say how amazing the photos are and ask what kind of phone this is.
I'm not some distinguished photographer, but with the right camera and lens, the color, contrast, bokeh, light, some minimal composition (not in that order) all come together very nicely.
Same holds true for video as well.
My point is, this comes up again and again, without any context that the pics weren't taken with the phone.
"Same holds true for video as well."
Which is the reason everyone seems to shoot with a GH5S and no longer with 5DMXs.
Also, and I think we agree on this, "better lens" doesn't need to mean "expensive", I can get very similar results from a cheap 40mm f/2.8 vs. and a 10x cost 50mm f/1.2 when the lighting is difficult and I can use a very high ISO.
As for the video part of your comment, let's agree to disagree.
I was trying to say that I get people commenting on how good my videos are because they're used to seeing video shot on mobile phones.
However, I'll take Canon color and 1.74x crop 4k over a 2x crop any day...shit 500mbps Canon codec be dammed.
I'm totally aware of the difference in quality between a decent camera and a phone.
An APS-C camera in capable hands is just as good as full frame.