Each one was far less expensive than a smartphone.
You didn't need to update your camera.
Transferring info between iPod, Camera, and laptop was actually pretty easy in most cases, yes it required you to plug things in but the friction actually improve things. I definitely was more invested in my photos back then.
As others have said, this was also about data privacy, modern devices are deeply invasive, they also are distracting. Modern devices are slowly breaking the brains of so many people in society and transforming us into mindless zombies. I am not immune of course, when I think about the past I can remember not being nearly so glued to my devices back when these were the normal devices. Before my phone was smart I only looked at it every now and then, I didn't compulsively carry it with me everywhere.
It really could be said that the old internet and the old way of doing things was more human