Marketing works because this is how people find out about your product. Outmarket the competition and you win. It doesn't mean people are sheep.
The iPod is a perfect example. Ever hear of the Rio Karma? That thing had features on it that to this day NO program\app\device can touch. It was far and away the best MP3 player on the market.
Ever see a commercial? Only the hardcore enthusiasts even knew about that product. The regular Joe's that just want to stop carrying cassettes? the iPod was good enough.
How about a commercial for the Creative Zen?
Nope.
But the iPod came out and not only rocketed to #1, it put some of these companies out of the MP3 business within 2 years. Why? Advertising... GOOD advertising.
Again, re: HTC. Have you seen any commercial or mainstream press lately from them? Nothing. And they continue to sink. So Joe Blow walks into Verizon... "hmmm. HTC? Looks like a nice phone, but I've never even heard of them!"
Yea, I DVR everything, but I also watch local news. Sports. Occasionally local news. I don't DVR those kinds of things. So yea, I see some commercials. And even with DVR'ing, if I see an Apple or Android commercial while fast forwarding I might stop and watch because I like to keep up on what these companies are doing.