Yes, they were used in business, to a very minor degree. Their appeal was wide but people found out they were crap and stopped buying them. Plain and simple.
I actually have one sitting on my shelf at work...never really used. (I'm the Information Director for a regional health center)
Of course the iPhone and iPad were evoloutions of technology...The point is that before they existed there were only very basic forms of these devices on the market and Apple created a novel revolutionary device that actually met user expectations. This is why it was sucessful and nearly every smartphone and tablet since has followed their lead.
I actually like this Android tablet and I really like Google as a company. Some of my friends use Android devices and like them. They are cool...but you can't deny that all modern tablets and smartphones got a cue from Apple...so calling Apple not innovative is ludicrous.
From a marketing perspective, you are definitely correct on Apple taking the lead and others following.
But from a technological stand point. No. What Apple came up with was not revolutionary. But I am not saying that Apple is not innovative. They are. And they have been very successful and I have been completely enjoying their products and sending them bucket loads of my cash to them.
We're straying from the main discussion here but...is Apple as innovative as they make themselves out to be? For some things yes (most definitely YES) but for some things it is just marketing BS. Sometimes they bring out old technology, call it something different, make it look different and slap on slogans like "re-invented" or "re-imagined" and get away with cheap innovation.
Sony R&D (not anymore but in the 90s and early 2000s) was truly innovative both in terms of design and engineering. If only their marketing was as good as Apple's we would all be chanting "Sony" instead of "Apple" in our daily prayers.
Unlike you, I don't like the android tablet (so far) because Apple does it so much better, but you can't give Apple credit for everything. Apple wouldn't have been able to bring out the iPhone if there was no Palm, or HP, or Microsoft, IBM, Nokia, Sony...and so forth.