"The iPod was better than any competitor it faced ever. The UI with the click wheel was completely unmatched."

I preferred the Creative Zen Touch to the iPod from the same year (2004), because:

- it had a great UI (similar to the iPod's, but the scroll area was vertical instead of circular)

- I could load music onto it easily (no need to use a special app)

IIRC Apple and Creative had some litigation about the IP for the UI, although I don't recall the details.

EDIT: I agree with your point about the iPhone.