3) The portable music category was moribund until the iPod.
Not exactly. Portable CD players were still selling in droves, and my bro was still using a sony discman when i got my first iPod.
Actually, I remember when the iPod came out - it kinda sat there, not unlike how the Apple TV did for the first year or so it was on the market. The initial ads were embarrassingly corny, and one tech mag even called it the new pocket protector.
At the time the iPod first came out,IIRC it was $399, but you could get an MP3 CD player for ~$60, and most people I knew just got those instead. That's not to say it wasn't a better product! The iPod was the NICEST MP3 player - not the biggest, not the smallest, and not the cheapest. In fact, it wasn't the most expensive either.
It definitely wasn't the first, either. It had a medium between flash-based players and the laptop hard drive players, and I think may have been the first to use 1.8" drives.
Thanks to the unique white headphones, and the REALLY slick dancing ad campaign that hit around the 3rd gen, not to mention the cheaper minis and such - the iPod sales skyrocketed around that point.
But yea, it wasn't a cult classic - and it didn't revive a dead market.