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I think the most defining factor of it is that you have the play store right there and can just run any normal android app too.

I even installed Termux via F-Droid today, and have a bluetooth keyboard with touchpad connected to it.

Sadly the whole open ecosystem is in grave doubt moving forward since Google announced they are shutting down side loading :-(

That's something I am worrying about too

The Vision Pro has the equivalent of this as well. 20% of the apps I run in it are “flatland” to use the snow crash term.

I can absolutely see that, yes

Not everything needs to be XR/VR/AR to be useful.