To provide some perspective here. Steve Jobs has been involved in 5 major technology revolutions.
1) Apple Personal Computer. Didn't sell well until the Apple II two years later.
2) Mac. Didn't sell well at first. Steve was even found crying in his office for its perceived lack of success.
3) NeXT. Didn't sell well. Sales were simply awful in the beginning.
4) iPod. Did sell well which was a total surprise to everyone including Steve. Wasn't until the iTunes Store did it really take off....oh yeah and that Windows port of iTunes helped too.
5) iPhone. ??? I expect it won't do well in the beginning simply because that's the way it goes for Steve.
It's a real honor and great fun to be following such great technology revolutions. The iPhone in 5 years will probably do VoIP over WiFi/WiMAX, have no ties to a single provider, GPS device, perfect iTunes integration, HD camcorder/camera, incredible car, Apple TV integration, among so much more I can't think of. I can't wait!
Well, All I see here is that we cannot really judge the success / failure of a product based on previous failures / success's of the company. The iPod did great, but it was a breakthrough, a large storage based mp3 player, when all the others were nary more than toys with 32 or 64mb of memory. It was a revolution.
THIS, however, is NOT. Take away fancy interface, and your left with a very poor smartphone judging by what has been found out so far. Yes, the interface is intuitive, and "Snazzy". Intuitive and snazzy however fail when you want to install a new program. When I want to watch divx on my iPhone, will "Apple/Cingular" let me? My smartphone does it just fine, with a 3rd party application.
These are the things that make a smartphone smart. Note, steve avoided calling it a smartphone, but labeled it an "Internet communicator".
I see this being locked down tightly like an iPod, and while that works great for an ipod, I definitely would not want that for a smartphone.
At this point, it offers nothing my smartphone in my pocket has, other than a snazzier interface. And to me, I cant justify paying another 300 dollars for (My 200mhz smartphone was 199).