Which itself much less powerful than other existing smartphones at the time...from which the iPhone itself was derived. The capabilities of the first iPhone weren't even close to the HTC Advantage, although Apple did manage to barely beat the rest of the industry out the door with capacitive touch screens.
The touch screen was decisive.
I had one of the 2007 devices. It was revolutionary. I had a a PC friend who was an apple reactionary. He said there was always a device better than apples. But he was changing devices every six months
My 2007 device still works. Apples devices have long been superior in public intuition. I can hand my device to anyone and they get it without explanation.