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In hindsight, I was not surprised that Apple went with an LCD screen instead of new, untried technology. They learned a big lesson with the less-than-stellar acceptance of the Apple Newton: Don't be on the bleeding edge.
The iPod was not the first MP3 player. Apple released a player that was not a big improvement over others on the market but they then came out with one thing the others did not have: iTunes. This gave you a seamless process of buying music and getting it onto your player. That was the big improvement.
They repeated that with the iPhone and the App Store - again other already existing smartphones had everything the iPhone had (or close enough) but again it was the seamless integration with the App Store that was the winner.
I think the iPod is the MP3 player sales leader (don't know for sure, haven't seen sales figures) but Nokia is still way out in front of Apple in smartphone sales although Apple has closed the gap somewhat. What does this mean for the iPad? No idea.
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