FSR exists, and FSR 3 actually looks very good when compared with DLSS. These arguments about raytracing and DLSS are getting weaker and weaker.
There are still strong arguments for nvidia GPUs in the prosumer market due to the usage of its CUDA cores with some software suites, but for gaming, Nvidia is just overcharging because they still hold the mindshare.
The smartphone is a different beast. Hardware and software companies spent millions of dollars of R&D to create the most psychologically addicting and attention demanding device as possible.