But isn't that what the Corolla was?
Note that this is a concept, I've never seen an actual production model look anything like the concept.
My father has a hybrid model, 2023 MY I think. It has physical controls for the radio, for AC and related things, for the heated seats, for the various "driver assist" features (like auto high beams, a parking thing (no idea what that is), radar, lane assist). It has a touchscreen, but that only seems to handle the maps, fancy radio controls (think equalizer and such), and other "car settings", whatever those are. You can absolutely drive it without ever having to interact with the touchscreen while doing normal things. I hate touchscreen controls as much as the next HN poster, but I have strictly 0 beef with the Corolla on this front. Door handles and windows work exactly the same as on my 2005 "dumb" car. Hell, I think it even has a physical toggle for the "automatic night mode" on the rear-view mirror, while mine couldn't be "non automatic".
To GP's point, I don't think it ever was an "entry level" car, just a "normal compact" car. I don't see why adding an electric drivetrain would have someone expect it would somehow become a basic, "entry-level" car.
I don't say we don't need those, but the Corolla never seems to have targeted that market, at least here in Europe. There always were plenty similar-sized cheaper and more basic cars from domestic manufacturers. Is it different in the US?