I don't buy this argument at all.
Essential was a brand new company, their first phone they make is the Essential phone with has a tiny cutout for the front camera and a bit of a bottom bezel and it was released in 2017.
I refuse to believe Google's hardware engineers can't come up with a much, much better design that what they've put into the Pixel 3 XL, whereas startup companies like Essential or dying companies like HTC can do so. Google themselves aren't manufacturing the device, they just need to design it and send the plans to Foxxcon to manufacture it.
Google's designers are just terrible and we're left with a phone with the biggest, ugliest notch on a phone, a large bottom bezel and 2016 specs with 3,430mah battery, 4gb ram, 64gb base storage, no headphone jack, poor-quality LG displays, single camera etc. Every other OEM that is putting out a high-end flagship. Where exactly is the value in the Pixel 3 XL?
On top of that, Google *should* be spending the time and effort to make the design exquisite. This is going to be their high-end flagship phone that'll retail for $850+, so there's no excuse to cut corners, but cutting corners is all we've seen so far.