Obviously an iPod was amazing, but they captured a huge chunk of the market when they came out with the lesser Nano.
I think tablets are hitting the phase where it is less about the features and more about true mass market adoption. The key to this is grabbing the huge chunk of the more price sensitive buyers - who appear to be quickly running to the Nexus 7.
Apple and Google are fighting to make money on the backend from each tablet sold. Content distribution tax will likely propel one or both of them to new heights in revenue.