I think the iPhone didn't cause panic in the industry because Apple was very very careful not to position their device as an Internet device; they've made it very difficult to put any app on the phone, and I think it is as much because they don't want to rock the mobile industry that much quite yet. I strongly suspect that Apple actually does get it, and they want to build their market share to serious levels first, and then, (along with Nokia) destroy the industry completely.