This is especially beneficial for poorer folks, who won't have to buy a whole new phone when a battery dies.

Plus, what you're talking about is a failure of socioeconomic policy, not one to be fixed by giving poor people junk.

They then end up paying more by buying five awful low-range phones that each last a year instead of one mid-range that will last more. No, I would rather everyone paid more for a phone. I find it hard to believe that the difference in price will make it impossible for them to buy it, if so, that's a separate problem. This + mandated software support may finally make it viable to just buy a used phone, too.