> Steve Jobs DID call it a "revolutionary internet communicator" like at least half a dozen times in that presentation. And he didn't deemphasize apps. He pushed for a native Google Maps app. He did push for a native YouTube app. He thought most of third party extensibility will be web apps, but he and his team were quickly convinced they need a native store when people jailbroke the phone and made one.
Not only that, but his hook was that Apple was releasing three products: a touch screen iPod (that he led with this makes me laugh, but really, it was a big deal at the time), a mobile phone and a breakthrough internet communicator.
I remember at the time, one of the most amazing things was seeing mobile Safari actually rendering real desktop web pages. Ironically, Steve even loaded the NYT website as an example. At the time, the existing "smartphones" (which Steve made fun of :D) completely choked at rendering HTML, and some of the vendors were even trying to introduce simpler markup languages like WAP just for mobile devices. Regular web pages rendered normally on the iPhone, and the multitouch made them work almost as well as on a desktop.
And then I also remember a particularly funny moment when Steve made a crank phone call to an arbitrary San Francisco Starbucks, asking a barista to order thousands of coffees. It was a wonderful demonstration of the integration you could get on a phone. Obviously Steve was imagining that iPhones would enable many more of these kinds of integrated experiences (mainly provided via the web, in his mind). It's just at that time, so few of these integrations existed because the phone was brand new!
So, yeah, totally agree with you. This article is just not accurate. The journalist could have watched the launch demo a couple times end-to-end on YouTube, and have realized that the iPhone really was meant to be a revolutionary device.