That was exactly Nokia's problem, they tried to cram whole computer in a phone. They even called their smartphones 'multimedia computers' and primarily targeted them for geeks. They never had a real idea why smartphones are useful. That strategy led them to huge amounts of code bloat and features without usability and made the development of updates horribly slow.

I think that Nokia's problem was they tried to redesign their software stack 3-4 times, never waiting long enough to get a mature enough product with real feedback before ripping things up and starting again. The worst case was the latest switch to WP7, especially after looking at the first (and maybe last) Meego phone release. It's like trying to build a house, getting the framing and walls up and right after you paint it you decide to go to a completely different foundation.