The sales numbers suggest the iPod was not "instantly desirable to anyone who had exposure to it."
Why? In part because, as you stated: "music downloading and purchasing was still becoming a 'thing'". It was only desirable to those who had embraced downloading and purchasing music.
To say that "basically nobody wants it" overlooks that they are on track to match or eclipse iPod sales numbers in year 1. The data suggests that an equal or greater number of people want in year one.
The more likely scenario here is that you, and others in these forums, "basically don't want it," and you are projecting your feelings about the product on to the market at large, despite numbers to the contrary.
It's ok. You're allowed to not like it. Not every product is for you.
Just don't project that feeling on to hundreds of thousands of people who actively disagree with you with your wallets.