On that note, why does the PoE capability often add such a big proportion of the price of various items? Is the technology really costly for some reason, or is it just more there's fairly low demand and people are still willing to pay?
PoE is not obvious to implement (take it from someone who has done it with a fair share of mistakes), uses more expensive components that normal ethernet, takes up more space on the board, makes passing emissions certification more complex, and is more prone to mistakes that ruin boards in the future, causing support/warranty issues. In other words, a bag of worms: not impossible to handle, but something you would rather avoid if possible.
I wouldn't call it "better", but the least-effort path among hobbyists and low end gear is often 12v or 24v sent over a pair with Gnd and a forgiving voltage regulator on the other end.
A full-module add-on in this power class is about $7 at 1,000 unit scale [0]. It would be around $3 with your own custom PCB design in terms of BoM addon at scale. That’s power only. Add another dollar or two for 10/100 PHY.
The trick is as others have said in what adding it to your design does in terms of complicating compliance design.
PoE power supplies need to be isolated (except in rare exceptions) and handle much higher voltages than common USB-C or wall wart power supplies.
They have to use a transformer and a more complex control strategy, not a simple buck regulator with an inductor. PoE inputs need to tolerate voltages several times higher than the highest USB-C voltages, so more expensive parts are used everywhere.
Any Ethernet (well, any RJ45 you expect in a home/office) has to have at least 1500V isolation from the RJ45 wire to anything metal that can be touched or is a connector on the device.
A PoE-only device with no electrical connectors besides the RJ45 can just use a very cheap RJ45 port with integrated magnetics and PoE allowance (tiny bit bigger wires and a center pin exposed, less than 50ct more than the cheapest RJ45 with integrated magnetics) and a cheap buck from 40~80V to e.g. 5V.
Oh, and a cheap bridge rectifier and some signaling resistors to take care of input polarity and signal to the source that we in fact want the approximately 50V that could hurt a device not made for it.
That’s not a cheap buck lol. Order of magnitude more expensive then 12v not even mentioning capacitors that can withstand 80v is $$$ and your derating goes to shit
It sounds like the PoE spec was designed before the arrival of “IoT” type things like the esp32, raspberry pi’s, etc.
How much of the complexity is a “fundamental electrical engineering problem” and how much of it is just a spec written to solve a different set of problems?
Almost all of the complexity of PoE is fundamental. To get enough power over 100m of ethernet cable (10x longer than USB) you have to run at much higher voltages like 48V. The same has eventually come to USB: for USB-C Pd to reach 240W, it also has to use 48V.
There have long been lower-voltage "passive PoE" systems which expect a lower always-on voltage on some of the ethernet pairs (usually 12V, 24V, or rarely 48V), which can be very easy to implement so long as your users can handle the setup and incompatibility with other ethernet devices (in the most extreme case of passive PoE on 100Mb/s ethernet, you simply connect the positive pair to the input of the device and the negative pair to the ground, no additional hardware needed).
Whenever you combine two things into one, the complexity and cost go up considerably. A regular coffee machine is pretty cheap. Add high pressure so it can make espresso and it gets considerably more expensive. Add milk so it can make cappuccino, again more complex and expensive. The same holds for electronics. Isolating power when it's alone is fairly straightforward. It gets considerably more tricky and hence more expensive the moment you want to place any kind of a meaningful data signal in its vicinity.
On that note, why does the PoE capability often add such a big proportion of the price of various items? Is the technology really costly for some reason, or is it just more there's fairly low demand and people are still willing to pay?