Apple, like all major corporations, doesn't have an emotional attachment to its products, unlike users. This is as true for Apple now as it was for Apple under Steve Jobs.I think Apple is pissed that people didn't love them due mostly to the weight and case, and they just abandoned it.
If a product is loved by users but doesn't make a ton of money, Apple doesn't put a lot of resources into advancing it (Apple TV users loved the first ATV, but Steve Jobs never made the device a priority for Apple because it didn't make the company a ton of money).
So, Apple never makes a decision about a product based on some kind of emotional stance, contrary to what many Apple fans allege. It would never spitefully hold back the development of a product because it is pissed that users didn't love the first one. It makes its decisions around product based on dollars, cents, and its assessment regarding whether a future refocusing on the product could bring considerable financial gains or not, and that's it.