Comment by r00fus

Thoughts:

1) References to Java on device and "lack of OTA" and the importance of "iTunes" indicated the presenters had little understanding of the possibility of the App Store which was a seismic shift in the industry that was apparently not foreseen.

2) They noticed some important missing features (3G, OTA updates, etc) but all of them were addressed with the next version (3G).

3) They were panicking about "iPhone mini" and thought it would be a feature reduction (like iPod interface) but in the end Apple just cannibalized its own profits and just lower the price on the full-featured 3G.