Lets frame the discussion accordingly indeed. Not all gaming machines are consoles and not all smartphones are iPhones. Why should we prevent Sony from providing a console just because the PC is much more than a nice-to-have utility and their console competes with PC's? Apple is not a monopoly, and they are not even the majority of smart phones. Why should they be forced not to deliver a console experience (that many even if not the majority enjoy) simply because the category as a whole is an essential utilty?
Why should we enforce through law what can be perfectly well accomplished by people voting with their feet and just buying the smartphone devices that aren't walled gardens?
I don't particularly like Pepsi, and rather enjoy coka cola, but I'm not going to go out on a mad rager about how "cola products are abundant throughout our society, so we desperately need to force Pepsi to change their recipe to align with coka-colas because otherwise our society is going to suffer from drinking bad cola!"
If you don't like iPhones don't buy them. If you don't like consol don't buy them. But trying to argue that the pc is such a essential utility and that it competes in some subset of functionality and that no-one should therefore be allowed to produce or own consoles is just absurd.