UPDATED: Daring Fireball nails it. Closed or open, the smartphone industry was stagnating before the iPhone...

ORIGINAL: Steve Ballmer is the gift that just keeps on grief'ing! Proven wrong about the iPhone already, both the Microsoft CEO and his counterpart at Nokia, Olli-Pekka Kallasvu both decided to take fairly transparent jabs at Apple, who once again didn't even bother to attend the show. CNet (via MacRumors) has the gory details.

Said Kallasvu (taking a break from iCloning the iPhone App Store):

Apple's vertically integrated model, where its hardware and software are tightly controlled by the company, further fragmented the market. And he added that what is truly needed is more openness in developing applications.

Said Ballmer, (who's been getting his own fair share of grief this week over WinPho 6.5):

"I agree that no single company can create all the hardware and software. Openness is central because it's the foundation of choice."

One disgruntled European expressed displeasure at all the iPhone talk, asking why it deserved attention when it had only a tiny sub-percentage of the market.

Responded AT&T Mobility chief Ralph de la Vega:

"Because the other 99.5 percent of the industry is trying to copy the iPhone."

It wasn't all hugs and kisses from AT&T, though, even with the iPhone providing life support to their bottom line. Jabbed de la Vega:

"The iPhone is a great success, but it would be even better if the applications were interoperable,"

Um, yeah, because then people might actually want to buy those other, less innovative, non-iPhone you have stockpiled in your warehouse?