I had the iPhone on launch day, and it was exciting, but it was obvious how long it had to go before it was a truly great product. So many things were missing -- things other phones already had at the time. The lack of 3G made the mobile web almost unusably slow. No GPS receiver made maps less useful. Couldn't sync with Exchange. Super slow CPU.
'There is no big step that does it. It's lots of little steps.'
How right you were. In baby steps, the iPhone became great. There was no single iPhone that really revolutionised the iPhone. It's still on the journey, but the iPhone has come a long way.
Um, there was a 4GB model initially....
Until it got discontinued the same year.