Err, I think you misunderstand a few things.
1) I did not make the denial, I only processed requests. Management above me determined there was no business need for the iPhone and instituted a blanket 'Deny all' to iPhone requests. The basis for their decision was clearly spelled out in published documents available from the company's internal site. When requests for iPhone 4s came in, they were immediately rejected. Nothing smug or arrogant about it.
2) The people requesting the iPhone 'wanted' an iPhone, they did not need an iPhone. That company's internal services, such as email and internal sites, were not designed or set up with iPhones in mind. There were more than a few instances where 'VIPs' wanted to use their iPhones to get their corporate email and access internal sites. Most of the people wanted the iPhone for its looks and status simple, and wanted the company to pick up the bill. Insulting and arrogant, when they couldn't use the device to actually do any real work.
After much beating our heads against it, the managers in the IT department got fed up with the head aches and simply said 'No iPhones'.
3)AT&Ts service in our building, and a large part of the city, was poorer than usual. This was around the time of the iP4's launch, when all iPhones were AT&T. Even on corporate AT&T Blackberries, dropped calls and disconnects were not unusual. The bulk of the contracts were either on Verizon or Sprint. There were a few AT&T contracts though, since the company was in every state.