The comments in this thread are largely backward looking. Yes Apple had crude network interaction at first. Nokia warned them of that for goodness sake.
It wasn't just at first. It's taken Apple this long to stop screwing up ATT's network with constant drops and reconnects caused by Apple's desire to increase talk longevity without putting in a larger battery. Form over functionality, at the expense of other ATT users.
AT&T was not as widely deployed on 3G as we all would have liked, but then that's why the first iPhone was EDGE, to eliminate that expectation out of the gate.
The first iPhone was EDGE to save money on parts and to get the original low $20 data plan.
But even then, if Verizon were available it would have been a poor substitute because of the lack of simultaneous voice and data,
The original model iPhone didn't have simultaneous voice and data anyway. At least if Verizon had sold the first model, it would've had EVDO speeds. Instead, it had EDGE speeds, no incoming call notification while using data like CDMA has, and no simultaneous voice and data.
If Apple comes out with a CDMA phone, ever, it will be a known in advance dead end device.
Verizon says they might shut off CDMA around 2018 to 2020. That's about ten years. How long do you expect someone to use the same model phone?
The present is GSM. The future is LTE. Now that AT&T is installing LTE compatible hardware in all new 3G installs, there will be a day in 2011 when they flip a (proverbial) switch.
Putting UMTS+LTE gear into new installs doesn't help all the current 3G installs. ATT will also have to spend the money to overlay LTE gear over current cells.
Verizon forsaked Apple and its vision.
You may well be right that Jobs holds some kind of grudge for whatever reason, but Apple had nothing but a vague idea when they approached Verizon in mid-2005.
ATT knew about the idea six months before that, and
still didn't sign a contract with Apple until mid-2006, well into actual design.