And yes, they connect to a wireless carrier's network. But I can also connect my laptop to a wireless carrier's network by buying a USB dongle and a SIM card. I'm certainly not expecting anyone to pay 30% of their revenue to sell me an app on my laptop.
Also consider the iPod Touch. It is much closer to being a PDA than a phone, despite the fact that it's essentially an iPhone without a cellular modem.
That doesn't resemble anything like my memory of the time. I had multiple general purpose windows mobile phones before iPhones existed. It wasn't limited and it could install apps. Neither Microsoft not the carrier took 30%.