Re: "THIS is what will get them the marketshare they deserve"
These phones are exactly what this market requires where feature phones and dumb phones reign supreme. Only but the very affluent can afford an iPhone in China - where it actually costs more than in the UK!
Yes, Huawei and ZTE are aiming for the same market as Nokia, but you obviously don't understand the chinese mindset; where all things equal in price and feature set, given the choice, they will go for the foreign brand; the perceived prestige is what, as you've intimated, the upwardly mobile people want in order to show off their new found wealth.
Another thing that you do not realise are the ties Microsoft and Nokia are making with indigenous companies and their services. They've already signed on the dotted line for Weibo Sina integration (Chinese Twitter) and Tencent's QQ - which is absolutely massive, amongst other things.