"The lack of compelling new services or functions means people are keeping their phones beyond the two-year average upgrade cycle."
That's probably true in general.
But here's why I will not be buying any more smartphones: they've simply become too dangerous and too difficult to adequately secure. Adding "compelling new services or functions" would not make a phone more attractive to me (unless the "new services" is actual, honest-to-god, security). In fact, adding new services would increase my reluctance, as "new services" inevitably bring more spying along with them.
5G itself has no real effect on my willingness to buy, except that it brings more security concerns along with it.
"He said, as analysts have for generations, that the industry really needs to shift to a service model"
I avoid service models like the plague that they are. Such things are showstoppers for me.