My daughter is 10 years old and wants a mobile phone (mainly because some of her friends at school have them). I have told her when she starts secondary school she can have a phone as she will be travelling on her own.
Some parents don't seem to be able to say no to their children and I have seen children at her school as young as 6 walking around with the latest iPhones, this is society gone made surely when parents cave in and can't say no to their children.
I'm completely at your side. Sometimes it seems to me that people are crazy. Sometimes I think that it was and will be.
Some parents are simply irresponsible. Not only they do ALL the whims of their children. And their children will be egocentric. Such upbringing affects families like yours and mine. Because it's really hard to tell a child "no" and explain why you made such a decision.
Some parents are too lazy to educate their children, because it is much easy just give the child what they want and do not think about the consequences.