As for the iTunes store, ever heard of Rhapsody? It launched in 2001. iTunes store was launched in 2003.
The fact that Apple stamped its mark on the global phone market and is making huge profits is absolutely not an inherent reason to be thankful for them. They won most of the market and now enjoy a massive network effect advantage (larger market => more developers developing for iOS => improved and cheaper app offerings => larger market); why respect them for doing the equivalent of what Facebook did in the social networking arena (make the most popular UX in the market)?
To be sure, a few companies deserve actual respect - for me, those are the companies that treat their customers well, are highly socially responsible, encourage openness, and play fair with all. Even better if they go beyond immediate profit goals to genuinely drive innovation. Most companies just want to make a buck by winning the market - nothing wrong with that, but that doesn't inherently deserve respect.
I'm not saying the iPhone didn't change the market. I am saying I don't believe it changed it for the better, where "better" means improved for the original smartphone owners. Look at the casualties from the iPhone: Blackberry, Windows Mobile, Palm, Nokia. 4 devices made for business, durable and professional.
Has there been any more substantial advancement in the smartphone market in the 6 years the iPhone has been on the market than in the 7 years between Windows Mobile and the release of the iPhone? Sure the iPhone changed the market... half a decade ago. And ever since, all its influence has brought us is more of the same.
Besides, it's a false dichotomy. The best products don't always win, the most popular products win. Popularity can be influenced by marketing and agitprop. And what's better for one market isn't what's better for another market. The problem right now is that the smartphone market only caters to one audience. You can't say that's "better".