Check me if I wrong, but hasn't the iPhone always been behind on features? I mean, how many years did it take just to get copy / paste.
The iPhone was never about features, it was about style and ease of use. The problem is that they set the standard and the other companies have finally caught up.
I wouldn't state it quite like that, but YES. Woz is not and never has been the target market for the iPhone, except in the beginning when no other alternatives existed. The iPhone is for people who want an easy, out-of-the-box device they never have to mess with and helps them do other stuff. Android is for tinkerers, cheap folks, and folks who easily succumb to marketing (Samsung alone spends 15x Apple's budget on marketing), and Windows Mobile is for Microsoft employees and people who want to be different. BlackBerry is for people whose company gives them a BlackBerry and makes them use it.
If you are comparing features on a bulleted list, the iPhone looks mediocre. If you're actually using it in your daily life, it's great. The iPhone isn't about checking off features on a list and never has been.