Right, but how much would you get for that smartphone if you brought it to a pawn shop? Assuming you properly reset its data and convince the pawn shop owner it isn't stolen I bet you could get $30 at most.
(And if the phone is locked down and the thief can't jailbreak it it essentially has a value $0)
On the other hand, you could probably make a lot selling on Craigslist.
I've been selling my family's old phones and computers for years, and the market is robust. Not $500 robust, but two-year-old iPhones go for about $200 (which, probably not coincidentally, is the upgrade price for a new phone).
(And if the phone is locked down and the thief can't jailbreak it it essentially has a value $0)