I feel like it's more of a world mindset. From episode 1 onward we learn that Ash, like every other 10yr old goes on a "Pokémon journey". There isn't a concrete point to these journeys. It's not like the kids have to go and bring back enough food to feed the townsfolk or they all die from starvation.
Even the quest to "Catch'm All" or to become a "Pokémon Master" are just two goals of many. We often see trainers who don't seem to really care about those two goals and focus on other things, like acting or helping people. Those are just Ash's personal goals.
So to me, it seems like the goal of the "journey" (And I really think we should hear more music from Journey in the show. "He's just a small town boy. . . Born and raised in PALLET TOOOOWNNN!!!") is to build the character of the children. I think the main goal here is to teach the children appreciation for the world around them and how to act in harmony and balance with it. It's more about building a relationship with your Pokémon and learning how to work in harmony with him/her. Then those lessons get applied to the world at large.
As you pointed out, even the isolated villages have technology, so it seems to me that the inhabitants want it the way it is. It's like they choose to make people struggle a little to get to them, to build character.
There are obviously cars and businesses, but it seems like people use the as little as possible in favor of small farm to table business' like the woman who milks that cow Pokémon (forget the name).
The kids learn life lessons on their journey and kids turn into adults, so the adults will have similar values and beliefs. You could almost think of Pokémon as a dystopian fantasy. Similar to Terry Brooks' "Shannara Series". Maybe todays world advanced and we got the ability to either create or adapt species into new species. We increased their intelligence and gave them abilities. Of course people started abusing those abilities and the world went to trash. When the dust settled and the rubble cleared, the ones who were left said, "No more.". They let the old infrastructure rot away and got rid of any of the weaponized technology, only keeping and advancing the tech that helped make their world better. The realized they had to make a fundamental change as a race and new that the children were the future, so they sent them on "journeys" with their Pokémon so that they would learn and ingrain the lessons they needed to, to prevent a repeat of what nearly destroyed the world.
Just a thought, but that's the kind of line I was thinking along, that they have it the way they do through choice as opposed to lack of ability to change their circumstances.