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Many of the big market opportunities that result won't be.

Big market opportunities might result. You're effectively investing in an unproven platform with high risk/return.

I know a lot of people that would have paid even more...

iPhone is typically used as a status icon rather than a device that actually has purpose (this is why some people replace their phone every year). Having such a high profile device a year before it comes out would be an extremely powerful status icon, just like how there's lots of people who are willing to blow 1500+ to get google glass ahead of release.