Lots of smartphones have lots of features, and as Steve Jobs has said in the past -- many people don't even know about them, much less use them.
With the original iPhone, Apple popularized mobile web browsing, and the iPhone 3G too that to previously unseen levels (and AT&T has the data network woes to prove it). The App Store made getting and using mobile applications so ridiculously easy that 50,000 now fill the store and over 1 billion have been downloaded.
So now Apple is set to take on mobile video.