I did. People are saying "specs don't matter"
No, you're not reading between the lines and understanding what people are saying. The way you are characterizing what they say you imply they would think it'd be ok with a single-core CPU from 2005 with 512MB memory and a 2MP camera to run a full Windows 10 etc. That's not the gist of what people are saying. I can't quite figure out if you're just trying to argue something for the sake of killing time or if you really don't see the nuance in what they're saying.
And again, if priced as I expect a surface phone to be priced (i.e. high), people will look at the specs too. And the better specs it has, the better it will perform. Especially since people are talking about it running x86 apps via emulation. If "specs don't matter" there, I don't know when.
Yes, they will look at specs as well, but the point was that whereas someone might look at an Android phone, or an iPhone, and look at its specs and based on that determine to upgrade their phone to the latest and greatest, the actual selling point of a "Surface Phone" won't be the specs, because the user can get that on Android and iPhone. Instead the selling point - the factor to win people over and make them invest in it - is the OS and other features.
I'll just take myself as an example, not to say that everyone is like me, but just to illustrate the principle:
When I bought my Lumia 950 I'd had an Android phone for a long time. It got buggy, slow and unreliable and only received two updates over its lifetime, and later than competing devices. So I didn't like the company (LG) and I wasn't in love with Android. So if I was looking purely at specs as a selling point, even
the selling point, then I would no doubt have bought an Android phone seeing that I'd get great specs at a great price. But for me part of switching was the Windows Mobile UI and the fact that I have PCs at home, not Apple products. So, setting specs aside was logical. The only extent to which specs mattered was if the phone was able to perform the functions I really wanted - i.e. the UI, continuum, etc. And it did.
GUI, Continuum, OneDrive/OneNote integration, Groove Music etc, all MS features, was the selling point for me, not specs.
Similarly, "we" are saying that a future Surface Phone will
not sell based on specs alone, which is to say specs won't be the selling point. Instead, the selling point will be something else that is related to the experience.
PS: Another way to look at it is if an app or feature really benefits from better specs, and if the increase is worth the added cost.
IF a Surface Phone runs W10
Mobile, then I would again argue there's a case to make for that OS running smoother on a lesser CPU than the competition, as far as I can see. So, if my user experience is X, then why would I pay more for X if I don't have to?