Providing the best experience on a controlled hardware/software system is vastly easier than doing the same thing in the physical world. I'm not doubting that

Providing the best experience on a controlled hardware/software system is vastly easier than doing the same thing in the physical world. I'm not doubting that they could do it, but dealing with radio towers, coverage, regulations, interference, etc... isn't going to be easy to do right. It's hard to make everyone happy, so it's probably better for Apple to let the carriers fight over coverage than to try to compete head-on. For example, Apple the carrier might find that a city isn't profitable to cover, so they avoid it. However, a regional carrier might find it to be. So if Apple had their own carrier, they lose out on any customers there. But, if they allowed that regional carrier to sell the iPhone, then they can keep the customer. I don't think it has anything to do with having a scapegoat for poor performance, or lack of ability to run a carrier. I just don't think it is in their interest to start one. Because, let's face it, this is Apple... They wouldn't be satisfied with running a #3 or #4 carrier, they would want to do it right - and be everywhere. And that is very expensive.