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If they filled that negative space my phone wouldn't rock annoyingly and sit awkwardly on flat surfaces, and that would be a great shame.
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If you filled the negative space on an iPhone 17 Pro/Max it would be a horrendously unwieldy phone. People who say this stuff seriously underestimate the disastrous effect on ergonomics increasing the whole phone from 8.75mm to 13.2mm would have.
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Would only need to be at the top, to balance out the camera.

The only reason I use a case is that the iPhone is close to unusable on a flat surface without it.

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People already do this by buying cases
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Most would continue to buy cases which would only make these phones even thicker
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I suspect (but am no expert) that the main arguments for integrated batteries are actually to extend the lifetime and sturdiness; drop your Nokia and there's a chance the battery pops out and gets damaged, drop it in the water and the battery compartiment is a point of ingress.

I'm arguing that the sealed / glued / tightly packed / irreplaceable battery thing helps keep phones working for longer.

Of course the counterpoint is that often the battery is the first component to go, and this law is intended to make it easier to keep them in working order for longer.

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Fairphones already have replacable battery for more than a decade (2013?), so yes, it could, can, hold a swappable battery.
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It wasn't even that long ago. My Galaxy S4 had a back plate that clipped on and was still thin
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And the Galaxy S5 that came after it, still had a replaceable battery while being waterproof.
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Nokia still make phones. They even had a line of smartphones until last year. I've got an XR20 "rugged" phone that's served me well for a few years.
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That's technically HMD a separate company but with some Nokia people involved. Nokia just licensed the Nokia brand to them and I think that deal ran out some time ago. I had a Nokia Android phone before I got my Pixel 6 a few years ago. Decent value device but the camera was a bit meh.

Nokia actually did an Android phone just before MS acquired them which they then promptly killed. And then of course they pulled the plug on the whole business unit. HMD apparently still makes feature phones based on Series 30. That's the pre-smart phone platform that a lot of Nokia fans remember fondly. The famously indestructible phones.

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Ah, good to know!
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I have my 9300 still in a drawer ( checked ) . Interesting if it is possible to find a replacement battery for it and what functionality would still be usable? A physical SIM, 3G still works…
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If it's one of the BL/BH/etc batteries you can still get them.

They're somewhat of a standard in DIY circles because they're a familiar form and all of the support stuff for them has existed for decades.

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If you remember Nokia's batteries they were covered in a relatively thick ABS shell. They were also, compared to today, had laughably little storage. A Series 40 Nokia just did not draw that much power. The single GSM/PCS radio also sipped power.

Even if you stripped a 5G phone down to a Series 40-esque interface the 5G radios alone would use more power than a whole 3310.

In order to get the power density modern phones need they require high power Li-poly batteries. An extra 3mm worth of ABS shell is a lot of lost capacity. You can't sell user serviceable Li-poly batteries without a protective shell. You'd never get a UL rating because Li-polys are dangerous if mishandled.

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I found out somewhat recently that those Nokia batteries (like BL-5C) are still used in hardware. You can still pick them up on some stores.

I came across them in portable radios (portable FM radios, small global radios, plane listening radios and similar).

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The N95 had something like 995 mAh. A modern iphone would have about 4x that.

Also interesting to know is that BYD was supplying a lot of phone batteries back then. I think they also supplied to Nokia. Phone batteries is what made them big.

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