It could have gone the other way too, like how Boeing's purchase of McDonnell Douglas, and McDonnel Douglas's takeover of key Boeing positions ended up eroding Boeing's culture of engineering excellence.
It was also market timing too. The iPhone was not Forstall's first attempt at a device like this. He was part of the team that was trying to develop something similar back in the era of the Apple Newton in the late 90s. And all of that were seeded from two of the three form factors (tab, pad, and board) that Xerox Parc experimented with back in the 70s, along with the mouse, the GUI, and OOP.