Basically the iphone had a $200 smugness cost built-in that provided way more than $200 of smugness, so all the smug seekers made out well--for a while. They forgot to factor in the fact that the smugness thereby provided was contingent on the absence of a near-future "now who's smug?" award for those society deems "not so smug as an early iPhone adopter," which, a some short time after all the shaken chicken-bones had settled, is exactly what happened.

Let's say the iPhone was given free today instead of just price-reduced: that would make you even angrier! Imagine the gall--other people getting things! Why, if we carry out your logic to its conclusion, you'd be happy if people had to pay more tomorrow than today, as though taking from others somehow justifies and internally authenticates your existence.