Yes, but everyone was happy with the status quo of MP3 players at the time. Nobody wanted the iPod. Everybody said it would fail. And certainly no one was asking for a centralized music store. Pfff!
I don't really agree with OC on other points, but the iPod really didn't scratch an itch. It changed the game by creating something new, not something that "solved a problem."
To say the iPod solved a problem is pure hindsight.