I mean yeah, what else would the CEO of a competitor say?
Like I said, there was a vocal minority. Did you forget that he was widely mocked for being so dismissive of an obviously very impressive product?
To be fair, if you remember 2007, the first generation was lacking in many areas. You couldn't send MMS messages. Receiving MMS was awkward and was done through an AT&T web site. You couldn't install apps. You couldn't take videos, only photos. It was slow, etc.
My first iPhone was a 3G, but felt the iPhone really started taking off with the iPhone 4. It felt like a huge leap.