This argumentation is getting tired.. Just because someone does something different it isn't necessarily good or better, and doesn't necessarily increase innovation and lower prices.
I'm sure many said that when the first iMac came out, much like the flash based mp3 player. Or a small hand held device that you can use to make phone calls AND surf the web with.
A phone with internet, pfff, that isn't innovative, a phone is a phone, you don't need internet capability with it.
I wonder what non-innovative apps you have on your iPhone...?