So what? So does every game-console manufacturer. Buy a different one.
Meanwhile, a game system with no games is not functional at all.
Might want to reconsider your argument here.
The first iPhone technically wasn't a smartphone (unlike its competitors at the time) because it did not have a way to install third-party programs. This situation only lasted a year though.
It did have a pre-installed Google Maps app, very much not a toy...
And don't game consoles typically come out bundled with some first party games too ?
What a laughably wrong assertion. The iPhone handled all kinds of PIM data and synced with computers. There was no requirement (or even expectation) that a "smart" phone had third-party applications.