p.s. And don't skimp on the features! Apple has so far been notorious for delivering what the masses want but with major compromises.... like the first Apple TV, iPhone, and iPod Touch.
There's a reason for that. Apple like many other companies has in the past gone down so many corridors of failed reasoning. What they've found is that innovation in small but frequent steps is the key.
The problem with going whole hog up front is that the truth of what the market will actually digest is not found in forums like these. It's out there in the marketplace... Jobs said Apple doesn't go and ask the market what it wants, and instead makes what they want. Well, that's partly true.
Apple puts out a feeler product based on an idea that was generated internally and not by endless focus groups who will steer the product from the ground up. Product engineers devise concepts based on what they see in the world and what inspires or captivates them. They're consumers too. So then Apple distills that product internally, and a lot of that comes from Jobs himself who will look at an idea and see how he wants it to come to fruition. As far as I'm concerned, as founder he has that prerogative.
So a product generated by internal brainstorming, polished by direction from management, gets put out with a baseline feature set.
Then this product is used as the data gathering tool to get REAL feedback, and not just what-ifs, about what people like or dislike, want or don't want. And if it's successful enough, further iterations will be shaped and polished based on that feedback.
The genius of this is that you can mitigate your failures greatly. If something doesn't work, you refine it to make it work. If something works but people want to see more in it, you refine it to make it even better. And if something fails miserably, you kill it and move on... plenty of other products in your pipeline... rather than the majority of resources being committed to one great idea and dozens of mediocre ones.
The problem with going whole hog on iPod, iPhone, etc. is that the development costs, fixed and variable product costs, etc. would be so much larger that the demand for the product to succeed sight unseen would be multiplied and the risk of failure is greater for every product they do this with. If they do it with every product, spending years to develop one piece of crap at a time (sound familiar?), their dominance won't last for long... and look at how that strategy eventually erodes market share like it's beginning to do with even the giant Microsoft.
The only way you could possibly hit a home run with the "everything AND the kitchen sink strategy" is if you consistently figure out everything customers want in a device all at once... that's extremely unlikely if not impossible. Not only is it impossible to please everybody all at once, nor is it likely that they won't change their minds five minutes from now... What might be desired in an iPod model today might not be desired tomorrow as the tech environment itself is changing rapidly. People who conceived of an iPhone three years ago imagined all kinds of weird modifications to an iPod... Hardly anyone imagined what Apple finally came up with, AND they still complain about features that aren't present now that they wouldn't have thought to even ask for five years ago. So consumers can only be trusted to a point.
As Dr. House says, "Everybody lies." To paraphrase that in Steve Jobs terms... There is a difference between what people say they want, and what they will buy. Most companies interpret this as "what people want versus what they are willing to settle for". Apple interprets this as "what people say they want, versus what they would want if they knew it were possible". To a certain degree, while Apple cannot satisfy every consumer who transfixes on features (physical keyboard) rather than requirements (language input), they often do set their own bar for industrial design well above what the average customer can think of. In this sense, it doesn't pay for Apple to set the customer's design guidelines above their own. Note I didn't say throw the customer's needs in the trash... I just mean that its more important to figure out what the customer is trying to DO, and then let the engineers set the specific design requirements that can achieve this in ways the customer hadn't thought possible.
Their strategy is to exceed, say, three design requirements brilliantly than insert 300 mediocre features that execute any one requirement poorly. This, above all, is what makes Apple the most desirable brand on the market.