Touch tone phones (DTMF) were first deployed at scale in the US in 1963, but they would have been in development at the Bell System for quite a while before that. Possibly also some limited deployments. This ad from 1956 teases a future without rotary dials.
DTMF also led to the rise of Blue Boxes and Phreaking.
Seen plenty worse shaped phones back in the day. I don’t think they were wrong.