Great and obvious post by Jesus Diaz (that everyone is doing) on how all the big dogs misjudged the iPhone.
My favorite quote is still from Ed Colligan, Ex-Palm CEO (I liked this one way back in 2006):

We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.

Mr. Diaz’s response is delicious:

Apparently, Ed, they walked right in, stole your lunch, your dinner, your wife, your car, your horse, and all your pudding. And then they ate it. And pooped it out.