The use of phones has changed since the original iPhone debut. The iPhone's screen was humungous compared to others in 2007. Many people thought it was TOO large.
Originally, phones were just that - phones. Texting was not common in the United States, and 'extra' features were usually to check the weather or stocks. A phone was a 'sometimes' device, and it was considered very uncool and geeky to use a phone out in public.
Now, it's not that way at all. Phones are used constantly throughout the day, and it's easier to get information using a larger screen. Texting is huge, Tweeting is huge, and the web is so much bigger, with so many more apps.
Apple hasn't embraced this change in the past 2 years like other companies have. It could be that the Apple employees are old-school (like me) who don't use their phones most of their waking hours, they generally use them as 'sometimes' devices like in 2007. Apple needs to wake up and create devices for those people who use phones all day long.