The iPhone should have run the same software as the Macintosh. When I first heard about it, I misunderstood and thought I'd be able to write Frontier scripts that ran both on my desktop and the phone. I was a Blackberry user at the time, and I found the idea of a MacPhone truly inspiring. From there, it went downhill, and downhill and downhill. This platform was Apple's revenge on developers. Everything under their control. You couldn't even ship a product that Apple didn't approve of! Obviously that was going to be abused, and it has been, but finally it's become so ridiculous that it's obvious, even to Mike, that it can't work.
I've been through this loop many times, this is Mike's first. The only platform that really works is a platform with no platform vendor, and that's the Internet.
Steve Jobs is the anti-Internet. The Internet is utilitarian, it works, but it's ugly. Jobs's stuff is so beautiful that when taken to its logical conclusion, and he's almost there now, it's so dazzling, so beautiful that you fail to see that it is also useless.