You forget that Apple's own i-Naming started with the iMac, which DID connect to the internet.
At the time the iMac was named, "i" prefixes were in vogue due to the rise of the Internet and Interactive TV / applications. Heck, there were
already trademarks by others on "iPod", "iPad", "iPhoto", "iBooks", etc.
According to the ad agency who invented the name, they sold the "i" to Jobs as being able to stand for: Internet, Imagination, or Individual.
(If you really don't know the MacMan -> iMac story, please read that link.)
Cheers!