So how does the world work? Apple fixed the industry. It's that simple. They did to smartphones what they did to mp3 players.
Apple didn't just make smartphones "hip" and "cool." Apple made them usable, powerful, and relevant. We can get into an infinite regression and go back to the horse and buggy, if you like. But really, the reason we have HTC devices running Android is because of Apple. The reason we have the Pre is because of Apple. The reason we have capacitive touchscreen as the new standard is because of Apple. The reason MS went back to the drawing board with WinMo is beacuse of Apple. The reason we actually have a usable App Store that people want to develop for is because of Apple. The reason we're enjoying rich multimeida content on smartphones today (and some stlll can't manage it) is because of Apple.
Compare the smartphone industry pre-iPhone to post-iPhone. There's a galaxy of difference. And no, I don't buy the "we were were moving in that direction anyway" argument. It took Apple to show everyone the way, and some *still* can't get their act together. At best, the indusrty was stumbling toward more button-festooned, bad-screened, stylus-based devices with horrible OSes.