My 2007 Nokia N95 was in many ways way ahead of the 2008 iPhone with a 5mp camera (zeiss), front-facing camera, video calling, MMS, 3.5" headphone jacket, cut&paste "technology", GPS, FM radio, Adobe Flash support (gasp), 8GB storage, and many more things. I was streaming live footage online with Qik and uploading videos to YouTube while the iPhone couldn't even record video! It took Apple several years to catch up with some of these features. This phone was a beast but the only thing it didn't have was a great UI/UX.

So yes, the iPhone doesn't even come close to the birth of the smartphone, but it did a whole lot to make it main stream.