Yeah, our debt too is basically just the mortgage and two cars, but our mortgage at half of yours/mo and will be paid off in 9 years. The two cars are 2/3 the cost of yours/mo, with one paid off in 20 months and the other in 46 months. The other 3 cars are paid off. We paid for our iPhones outright because we are blessed.
But one of my daughters is a server at a restaurant, and after rent, utilities, food and clothing we still pay for her cell phone bill, car maintenance (we paid off the car 2 yr ago) and health care, 4 months after she graduated from college. Her 1st career related job next month will pay about $25,000 a year + benefits, with some upward mobility while she plans for grad school.
So there's not much room for people like her to pay $1000 outright for a phone. If I was in her situation, but paying all of my bills myself, I'd struggle to even buy a $350 iPhone SE.
Fortunately for her I recently gave her an iPhone 8 as a graduation present that I paid for outright, and she'll treasure it for 3 years. She was given the choice of an 8 or an X, and said she'd be afraid to walk around with an X and have people think she is rich and take advantage of her, so she uses a case that makes her 8 look like her old broken 6. She'd have been just as happy with an SE.
Most other people don't have parents like us, or money like us.