You're just trying to dismiss the value of a console by branding it as a 'toy'. You could come up with some pejorative to undermine the value of virtually anything: it's not a proper argument. An expensive car is a 'toy', a nice watch is a bit of 'bling' etc.
You seem to concede the point on an expensive phone's lack of functionality, and then just repeat the same argument.
A good $800 of a $1k phone represents no functionality, so you can't justify that price based on how much utility it provides. Stop trying.
I'm not saying a console is definitely worth $1000 to people, but it's at least possible. That works out at about $150 a year, or $12 or so a month. About the same as Netflix.
Now, there may be many reasons people would baulk at paying $1000 for a console, but on the face of it, them not rivalling Netflix for entertainment value isn't really that plausible.
I'm not trying to undermine the value by labelling it a toy, I'm simply labelling a home console as what it is, a toy. It's a product that is designed to be played with.
I'm not trying to justify the ridiculous prices of luxury brands and good, I don't subscribe to it and personally have never had a phone that cost over £150, but you keep trying to equate a consoles value to a phones value not by comparing the cost and utility of a console to a phone but with the comparison of a cheap phone to an overpriced one. You're arguing one thing but evidencing something totally different.
Cars and phones are not comparable products because they have practical utility. Essential utility that has value in the outside and working world. Yes you can buy luxury and overpriced versions, as you can with most things in a market where people with more money than sense exist, but the essence of the item is it's practical utility. And both a phone and a car have far more use and practical real world utility than a product made for play.
That's the chasm. It's a lot easier to justify paying a high price for something that has real world utility than it is for an item you can only play with for entertainment value at home. Then there's the social and fashion value - both a car and a phone can offer status that can easily be displayed whereas a home console is something that sits in your home out of sight of daily social interactions.
The minute that you move into that price range you're not just competing with other consoles, you're competing with other products vying for that big wad of cash. Products which can offer day to day utility and practical use as well as entertainment, fashion and social value. Phones and cars offer this, consoles don't.