Of course you can still create an iPhone app that becomes a success. But I imagine on the first they, people were kind of hungry to try the new app store and their new iPhones. They would have bought just about anything (wasn't "Flashlight" in the top 10?). Once they have bought two or three games, how many more will they buy? So coming out with a cool game a couple of months later is a huge disadvantage.
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Of course you can still create an iPhone app that becomes a success. But I imagine on the first they, people were kind of hungry to try the new app store and their new iPhones. They would have bought just about anything (wasn't "Flashlight" in the top 10?). Once they have bought two or three games, how many more will they buy? So coming out with a cool game a couple of months later is a huge disadvantage.