I was there and it was a very common view, though perhaps not a majority view, that the iPhone was a flash in the pan. There were lots of people committed to the idea that only physical keyboards could work for mobile. Touch interfaces were viewed highly skeptically. And it wasn't just the Microsoft or Palm people saying it, it was large chunks of their customers. The initial goal of the iPhone was 1%, yes, 1% share of the phone market! And many thought that was impossible for Apple and their strange new device.