"a gap where nobody actually lives."
Or how about a gap where over three quarters of the Earth's population lives?
Take away the operators' subsidies, and the cheapest "Budget Android Job" is four times the price of either of these handsets, and has poor talk time, questionable build quality, and very likely no Dual-SIM support. And four times that €35 price is a lot of money in a country where you can get a decent meal for €2.00.
This is primarily a voice phone, but with added internet connectivity and instant messaging support. No 3G because there's limited 3G infrastructure in the places these will be bought.
There is a niche for these in markets like Western Europe too: there's a small but significant minority of customers who want a purely voice-call phone, or just something they can rely on to still be working even after a week of use. Also, there are people, even in "rich" nations, who cannot afford three-figure sums for a phone. They mightn't hang around in your local Starbucks (and this is one of the Starbucks USPs, but not one they explicitly mention), but they're out there.