But that's not the point. By that logic Apple would still be selling the iPod.No. Because then you wouldn't need an iPad / MacBook.
Apple are not going to let the iPhone cannibalize those sales.
If the market moved toward phones as desktops, Apple would be forced to cannibalise sales anyway. I can still envision iPads selling in that world, and real desktop computers for high-end workloads, but an iPhone with a dock could probably handle everything else within a few years.