It blew every other phone, but it wasn't that original over PDAs. I had a Windows 6.5 pda then, and I thought the iPhone was way cooler and well-designed. Of course it was inmensely superior to my PDA, but not so incredibly original. It didn't do anything at all I wasn't already doing with PDAs, it just did some of them (chiefly, web browsing) way better, most of them in a cooler way (pinch to zoom, animations), and even a few, slightly worse (browsing while listening to music).
Apple has this fame of original crazy geniouses that have invented X or Y. They have mostly taken other's ideas and perfected them. Perfected them a lot, admittedly; even may be taken them to a new level of awesomeness with a great vision of on which details it was better to improve.
I love apple products, don't take me wrong. They deserve a lot of credit for the iPod, the iPhone, iOS, the iPad...
I think it was extremely childish of Jobs to get so pissed.