Hmmm- not sure you're right. Those that invent things rarely get them right straight away. Palm having got there first doesn't matter all that much- the sheer awfulness of many more recent Palm products probably is more relevant that having allegedly come up with the PDA form factor (I think that's what you are implying).
As for design/function for the iPhone- again not sure you are right. I think that the physical design is pretty uninspired. I hate the curved shiny back, andn the big silver bezel looks wrong. I much prefer the original iPod Touch. If you are saying that the interface design (and/or the user experience) is lousy, I recommend you go frantically rub one out over the WinMo 7 rumour sites to atone for your sins, because you have either never used an iPhone or are mad.