If kids are using their phone during class then you either confiscate the phone or kick the student out of the class. If they do it during a test you mark them down as cheating and fail them.
>How do we expect kids to pay attention or be productive with a smartphone in their pocket?
I think this is setting them up for the future, because in the future they are going to have a smartphone in their pocket at all times. They're going to have to learn to handle that eventually.
But in the pocket doesn't mean in hand.
Outside of class time though? It's nobody else's business what they do.