I think people that are highly technical see this too much from their own perspective. Sure, there's a million technical reason why the first iPhone sucked if you look at it from a knowledgeable tech perspective. But most people don't do that.
My Aunt is 70; she's so technically clueless the VCR that she still has perpetually flashes 12:00. She once told me she hated renting tapes, because it takes so long to rewind them. (She would start rewinding at the end of a movie while the tape was playing- IE: scanning back through the entire movie!)
A more technically clueless person you'd be hard pressed to find.
She calls me up raving over the iPhone, (3G at the time) should she get one, what do I think about it, etc.etc. She got the 3G, loved it, and now has a 4S, loves it. She's retired- has no business intrest in having a 'smartphone' yet she'd sooner give up her car than her iPhone.
My Aunt -and all the millions of people like her- wouldn't get excited over kludge like the old WinMo phones if her life had depended on it. She probably couldn't even tell you the name of a single other phone manufacturer besides Apple, let alone an individual model of phone they make.
It's millions of people like her that are the reason Apple creates game-changers. If you can blast through all the noise, and make my tech-clueless Aunt lust after your gadget- you've won. Virtually no one but a company like Apple can do that consistently. That what they make doesn't necessarily appeal to us tech-junkies on an individual feature basis doesn't really matter that much in the big scheme of things.
Sure I could be wrong though, and the author's view was accurate. Maybe there's some other phone from 2007 that someone like my Aunt could even tell you the name of today, let alone give a good crap about. Or maybe not.