I don't even think it's some sort of nostalgia for many. It's some sort of lifestyle they envision themselves of having by buying certain products, these older products are just more 'unique' nowadays.
I think the distraction problem is more fundamental than that. Especially for children growing up now with a very capable smartphone who will experience genuine anxiety being separated from it.
Nostalgia is perhaps a catalyst, but I'm convinced there is something more there.