Nokia went with devices like the Communicator, which opened out to give a big screen for web browsing with a computer style keyboard, with much of their pre-iPhone touch screen developments still on the drawing board when Apple pounced.
That makes it sound like Nokia's Communicator only failed because it missed the "next big thing'" of touchscreen. The real reason they failed was because they were awful phones. Even without the touchscreen iPhone around to compare to, they were terrible. Slow, buggy, poor UI, heavy, bad hardware design.
Nokia may have lacked courage and vision, but they also lacked technical ability.