Windows CE was not functional with an easy to lose stylus, the touch screens were horrible and it was mostly a miniature Windows desktop. The apps were not exactly touch friendly.
The version of IE was unusable for most of the web. But you don’t think “extreme ease of use” made the iPhone more functional?
The devices we use to deploy were $1000-$2000 (ruggedized devices) so they definitely weren’t cheap devices for the time.