This is why the iPhone/iTouch is so powerful: it's not just a device, it is a hardware platform for anybody who needs to build a small, mobile device. Not just

This is why the iPhone/iTouch is so powerful: it's not just a device, it is a hardware platform for anybody who needs to build a small, mobile device. Not just the universal remote control: we've already seen apps that turn the iPhone into a medical device, a musical instrument, and a barcode scanner. This is also where Android, being more open, has a potential edge -- it should be possible to make even better things given the greater freedom allowed, but at present the massive market share advantage of the iPhone means we're going to continue to see innovation primarily over there in the short term.