If I wanted to spend time processing every snapshot I take with my phone, I wouldn't use my phone at all, I'd use my X100T and get pictures that are much better than anything the phone can do.
That’s what I’m actually doing. My Pixel 3 died suddenly in November 2021. Since it was an emergency, I bought a cheap phone with a horrible camera, intending to upgrade it quickly and taking photos with my X100T in the meantime. A year later and I’m still using that setup. The camera is portable enough to take it everywhere, the processing presets are good enough for me, and I have the RAW files available just in case. I’m probably in the minority of people who would do something like this, but I’m pretty happy so far.
I think most people buy iPhones because it's a status symbol or because it's what they are accustomed to. Certainly not because of feature A or B, and most definitely not if that feature is "tasteful photos", whatever that means (whose taste?).
But there is a small vocal minority which cares about picture quality, that is true. Totally irrelevant to apple's bottom line though.