It was. You think the rubber band thing was just another beautiful accessory designed by Ivie? That is the smoking gun, proof that Apple (Jobs) knew of the problem.
Look, this is the Apple that went with the notorious non-performer AT&T. There have been terrible performance issues all along, but people put up with them and seemingly are now.
And the bottom line? Apple has caves full of money. Kind of tells you something about the competition.