Jason Kottke, just after the original iPhone was announced in January 2007:
I guess we know why iPod development has seemed a little sluggish lately. When the Zune came out two months ago, it was thought that maybe Apple was falling behind, coasting on the fumes of an aging product line, and not innovating in the portable music player space anymore. I think the iPhone puts this discussion on the back burner for now. And the Zune? The supposed iPod-killer’s bullet ricocheted off of the iPhone’s smooth buttonless interface and is heading back in the wrong direction.
Sounds just like today, critics preaching a similar narrative: "The iPhone is boring, Apple can't innovate anymore."