A much better tactic would've been 1-2 expansion ports for specialized hardware modules -- everything from credit card readers (a la Square), medical sensors, portable oscilloscope, etc. A standardized peripheral interface for hardware expansion slots across all phone variants could've really enabled a whole bunch of new applications (and industries). I'm sad to see it abandoned entirely.
(I wonder if there weren't some strong personalities that kept the "100% modular or bust" mentality?)