I agree with points in general, but for one detail:

> Europe does have excellent designers; however, it lacks a start-up worshipping culture...

So? The iPod wasn't made by a start-up. The technology wasn't built from an acquisition of a start-up. I dare say it had absolutely nothing to do with start-up. Yes, Apple came from a start-up. But to my mind, the distance between Apple the start-up from a garage and Apple that envisioned the iPod and DRMed iTunes is sufficient to stop assuming only a start-up could've made the iPod.

Big companies make things too.