It’s not always demand. Lots of people don’t want smart TVs, but that’s too bad. The smart TVs are subsidized to manufacture because the software can put more advertising on, which makes it a supply-side issue.
If the people who wanted dumb TVs didn’t want smart TVs *enough*, they wouldn’t buy them - the reason it still works is because people just buy smart TVs and don’t use the smart features. So it’s still a demand problem - demand hasn’t dropped enough!
But you’re right - demand != desires of consumers. But they’re going to optimize for what people buy, not what they want or say they want.
I of course agree with you principally, I don't want smart devices, but it's not very malicious to have a sleep number bed sitting unconnected...