"That just comes off to me as though even he didn't realize how ubiquitous phones would become, and how integral to our lives they would become, even replacing

"That just comes off to me as though even he didn't realize how ubiquitous phones would become, and how integral to our lives they would become, even replacing computers for so many tasks." No one did, though. Go back and watch that keynote — there's thunderous applause for the iPod and phone portions of that sentence, and (relative) awkward silence for the "internet communicator" bit. Reading through the Jobs biography, there's a great segment on the development of the iPod wherein Tony Fadell (I believe) details how he was coached to present the best mockups to Steve last. Given the ordering of the three statements in that sentence you quoted, I have to imagine that someone at Apple — maybe not Steve — understood the eventual ubiquity of the smartphone.